In August 2015, the Ministry of Finance announced resumption of fertilizer value added tax, and give the transitional period of 10 months, in the transition period, allowing in accordance with the simple method of tax of 3% levy value-added tax, from July 1, fertilizer value added tax transition period expire, fertilizer will be unified 13% VAT collection.

　　Near the end of the transition period, in order to avoid taxes, the firm sector in order to digest inventory, sell at a low price, the fertilizer market appear obvious fluctuation. Fertilizer to restore the collection of value-added tax, the largest impact on potash, at present, the contract has not been finalized, the industry rumors, 2016 or even face the situation does not sign. There is also news that the current contract is signed in the sprint stage, the fastest in the end of June to determine.

　　At present, the direct impact of the policy on the price of fertilizer is not obvious, and fertilizer prices continue to decline in the short term is almost inevitable event. At present, the price of agricultural products is not high, the overall economic situation is not clear, fertilizer prices also continued to slump. Excess capacity of fertilizer production enterprises will not rush to increase, but also does not dare to increase, the company's focus is to reduce the amount of work to reduce the current inventory.

　　Due to the recent downturn in the fertilizer market, in the past, fertilizer policy will face elimination. In the past, manufacturers are often ahead of time to open a sales meeting to encourage dealers to purchase in advance. However, the current planting households purchase fertilizer more than in a wait state, the overall oversupply of fertilizer, resulting in slow delivery channels. Therefore, the traditional early stocking operations to implement the difficulties. Next, the cycle of fertilizer use will be greatly reduced, the cycle will be compressed into 5-7 days. For channel providers, this will reduce the storage costs, capital operations more flexible, to enhance the ability to control risk. And for the upstream manufacturers. This Kuaijinkuaichu by way of fat will increase corporate pressure, no way in advance of production, the production plan may be broken, the funds will be very nervous.