Recently the industry has emerged to delay fertilizer market-oriented reform of sound, on the grounds that fertilizer prices fell sharply, and now a lot of the fertilizer business difficulties, if canceled policies, some companies to survive will be more difficult, and some may even go bankrupt.

In this regard, I believe that, "Thirteen Five" period should unswervingly adhere to the fertilizer market-oriented reforms. At present internal and external environment of the fertilizer industry analysis, five factors determine the pace of the fertilizer market reform should be accelerated rather than slowed from

First, the impact of the overall environment. In recent years, the most striking feature of China's economic work is decentralization, to the market to be effective, those who can are formed by the market price to the market, without undue government interference, the invisible hand of the market fully play its role.

The second is to promote the healthy development of the industry. At present, China nitrogen, phosphorus excess capacity is very serious, as the main reason the market malaise, backward production capacity must be eliminated in order to promote the healthy development of the fertilizer industry. Otherwise, not only will not die damn business, the business of live and live well. Some fertilizer companies obsolete equipment, backward technology, high energy consumption, high pollution, should be eliminated long ago, but because of preferential policies to support enterprises still linger.

Third, the policy context has changed. China's fertilizer industry, small scale before production can not meet domestic demand, requires a lot of imports from abroad. To protect the domestic agricultural production needs, the fertilizer industry and many other countries grant preferential policies to support the development of the fertilizer industry, more and increase production. But with the great years of development, China's fertilizer production reached 70 million tons of the giant, not only can meet domestic demand, but also exported to the international market to digest excess capacity. If you continue to use preferential policies to encourage production, and that production of the fertilizer industry overcapacity contradictions will become more prominent.

Fourth, policies causing an imbalance within the industry. Enjoy more preferential policies are mainly some of the old former fertilizer business, the new fertilizer business is much less enjoy the preferential policies, which formed an imbalance in the fertilizer industry. New enterprises with advanced technology, should be dominant in this competition, but because of the different enjoy preferential policies, not necessarily those Although there is no technical advantage to compete there too "policy advantage" of the old companies.

Fifth, the fertilizer market timing is better. In China, the often difficult reforms carried out in its lower prices, which can reduce a lot of resistance. 2008 fuel tax reform is the case, the oil change is known as the hardest nut to a bone, the government has long had the idea of ​​fuel tax reform, but because of high international oil prices, has failed to implement. Then catch the second half of 2008, international oil prices fell sharply opportunity, timely introduction of a national fuel tax reform, the establishment of a market dominated by means of a new oil price formation mechanism, after years of it eventually became immortal. Coal resource tax reform last year, too, for many years but have been unable to implement the proposal last September to seize the opportunity of coal fell sharply, the timely introduction. Now the fertilizer market reform is also facing such opportunities, international and domestic fertilizer prices are very low, and resistance market reform is unlikely. Even after the market-oriented reforms, fertilizer prices rose appropriate points lower than the previous high point of a large portion of farmers easy to bear.

Fertilizer industry, market-oriented reforms may have pain, but after the throes long pain as short-term pain of reform, I believe that the fertilizer market will usher in a better tomorrow.