Agricultural subsidies have been adjusted to increase the pressure on the chemical fertilizer industry.

Recently, the Ministry of Finance and the Ministry of Agriculture jointly issued the guidance on adjusting and improving the three subsidy policies for agriculture, adjusting and improving the subsidies for improved varieties of crops, direct subsidies for grain farmers and comprehensive subsidies for agricultural materials from 2015. What does this have to do with the fertilizer industry?

Subsidy adjustment-"whoever grows more grain will give priority to support."

The "opinion" points out that all provinces, autonomous regions, municipalities directly under the Central Government, and cities separately listed on the State plan should adjust 20% of the comprehensive subsidies for agricultural materials issued in advance by the central government, plus the pilot funds for subsidies for large grain growers and the incremental funds for the "three subsidies" in agriculture. as a whole, it is used to support the appropriate scale operation of grain. The support targets are moderate-scale producers and operators of major grain crops, focusing on new business entities such as large grain growers, family farms, farmers' cooperatives, and agricultural socialized service organizations, reflecting that "priority will be given to those who grow more grain."

At the same time, the "opinions" selected five provinces, including Anhui, Shandong, Hunan, Sichuan and Zhejiang, and selected some counties and cities to carry out pilot agricultural "three subsidies" reform. The main content of the pilot project is to merge the "three agricultural subsidies" into "agricultural support and protection subsidies", and the policy objective is adjusted to support the protection of cultivated land and the appropriate scale operation of grain. Increase and decrease-the pressure on the chemical fertilizer industry increases

This adjustment once again emphasizes the importance of food security in China's development strategy and highlights the guidelines for supporting the protection of cultivated land and encouraging the appropriate scale of food. Relevant people said: in a sense, the direction of this adjustment is to increase subsidies, while the corresponding chemical fertilizer industry is reducing its support. this increase and decrease is precisely the national policy level in straightening out all aspects of the agricultural planting industry chain. from intermediate subsidies to source subsidies.

Policies such as electricity price, gas price and freight price for chemical fertilizers are being gradually abolished. "now it is necessary for the market to improve the price mechanism, which is determined by market supply and demand, and now there is already excess production capacity of chemical fertilizers." Relevant sources said. There are also people in the industry calling for marketization to exert greater pressure on the chemical fertilizer industry, whether it is possible to provide tax concessions, such as resuming the implementation of export tax rebates, so as to promote the development of the industry.