The Chinese government has told local governments at all levels to ensure fertilizer supply and maintain largely stable fertilizer prices for the coming spring application season.
A wide range of instructions were delivered in a notice that was this week, spanning production, transport and commerce. The move highlights the government's eagerness to support the major agriculture season as the country continues to battle the coronavirus.
The resumption of fertilizer and raw materials production should be supported by local governments, with top priority given to China's phosphate industry to ensure fertilizer supply, under the condition of effective epidemic prevention and control, the notice said.
Coal suppliers including China Energy, ChinaCoal and Shaanxi Coal should prioritise supplies to coal-based fertilizer production. Gas suppliers including PetroChina, Sinopec and CNOOC should give priority to gas-based fertilizer producers as well as residential users, it said.
The Chinese government has also instructed local road transportation authorities to assist agriculture-related sectors including fertilizers and its raw materials like coal, phosphate rock and sulphur. Railways should ensure nitrogen fertilizer shipments from Shanxi, Xinjiang and Inner Mongolia, phosphate fertilizer shipments from Yunnan and Guizhou, and potash fertilizer shipments from Qinghai and Xinjiang, as well as the movement of raw materials.
The government also said the off-season storage programme must play a key role in ensuring fertilizer supply. State-run companies CNAMPGC and Sinochem in particular are required to ensure domestic potash fertilizer supply.
Fertilizer associations must encourage distributors to focus on domestic supply, while Chinese traders are encouraged to import fertilizers for spring application. Some key areas are required to build higher fertilizer stocks than in past years, via their local governments. Fertilizer e-commerce will also be supported by the authorities, while an emergency delivery function will be set up to ensure agriculture-related products can be delivered to farmers on time. Chinese banks are required to increase loans to support fertilizer producers, distributors and off-season storage bearers.
The only exception to these measures is Hubei, where epidemic prevention and control are still the top priority.
