BEIJING, July 24 /Xinhua-EMWNews/ -- Due to rising prices for

agriculture products, agrochemicals and pesticides (

http://news.tootoo.com/Chemicals/ ), along with the decrease in foreign

imports, the Chinese domestic price of chemicals has recently skyrocketed.

As a result, in an effort to maintain Chinese farmers' income at reasonable

levels, the National Development and Reform Commission (NDRC) has altered

their fertilizer regulation policy. Yesterday, a senior agriculture channel

investigator of Tootoo.com's news website interviewed several agriculture

enterprises about the impact of this new policy.



    



    One of the interviewees from a chemical enterprise and registered

member of Tootoo.com from Tianjin said that in the actual execution the

agrochemicals' factory price ( http://www.tootoo.com/w-Agriculture/ ) was

well regulated and followed appropriate policies. However, in the

preferential policy aspect, only value-added tax exemption was carried out,

while other policies were often overlooked because of the elasticity of the

policy. So the difficulty of the enterprises maintains the production

operation enlarges widely.



    Another chemical fertilizer ( http://news.tootoo.com/Agriculture/ )

interviewee from Shanxi also indicated that the fertilizer enterprises'

situation is very difficult, because the coal market is now completely

deregulated and can raise prices at will. Coal, as the most important

energy source for producing chemical fertilizers, impacts this market

closely. Moreover, urea is being restrained by price limits.



    Therefore, in a professional report, senior agriculture channel

researchers said that the rigidity of the chemical fertilizer price policy,

part of the preferential policies not being carried out and raw material

prices continuing to rise put huge pressure on Chinese domestic chemical

fertilizer producers to meet challenges and opportunities. In the report,

it also points out that although the government puts chemical fertilizer

production in a very vital position, highlighted by the release of a series

of preferential policies for raw material supplies and tax revenue, the

effect was not always obvious.



    Recently, a market analyst from Tootoo.com learned that the National

Development and Reform Commission (NDRC) has proposed preliminary

improvement programs such as cancelling potassium fertilizer (

http://www.tootoo.com/buy-potassium_fertilizer/ ) price supervision and

subsidizing farmers. This basically means the price of potassium fertilizer

will be unlocked by the government.



    In addition, Tootoo.com's market analyst analyzed that speaking of the

present market situation, the opportunity for the domestic chemical

fertilizer market is bigger than the risk, judging from China's domestic

chemical fertilizer falling prices, compared with international raw

materials and chemical fertilizer prices, which are still rising.

Meanwhile, if international chemical fertilizer prices continue to grow,

China will re-export chemical fertilizers, putting pressure on domestic

market supplies. However, overall agricultural chemicals are set for a boom

under the current environment of rising raw material costs and increasing

demand.






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