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The practice of Shaanxi Province has attracted the attention of the industry. Last week, when interviewed by reporters, large and small enterprises and farmers showed different reactions, and some were happy and worried.
“The practice of Shaanxi Province is worth learning and learning from, and it is promoted on the basis of summarization and improvement.†Liu Jinxiu, deputy general manager of Henan Zhongyang Dahua Group, did not hide his views. He said that starting from the overall situation of protecting the interests of the majority of farmers and ensuring the increase of grain production, the state is very necessary to limit sales of fertilizers, and fertilizer companies fully agree. However, the country should also consider the difficulties of chemical fertilizer companies. It is suggested that the relevant government departments refer to the practices of Shaanxi Province and give appropriate subsidies to the state and provincial key fertilizer companies when they limit sales. In doing so, on the one hand, it can promote domestic production and supply of chemical fertilizers, suppress large fluctuations in fertilizer prices, and protect the interests of farmers. On the other hand, due to the small number of these companies, most of them are state-owned large-scale enterprises, which are easy to control and supervise, and they can get twice the results with half the effort and have immediate results.
Xue Sanxing, head of the marketing and transportation department of Shaanxi Weihe Coal Chemical Group Co., Ltd., also stated that the subsidy policy is a good thing for chemical fertilizer producers and farmers. For enterprises, with subsidies, they can basically offset the increase in costs brought about by the increase in raw material prices, maintain a reasonable profit margin, and confidently produce chemical fertilizers. For farmers, since the government strictly controls the delivery and circulation, and requires companies to put the rated chemical fertilizers on the market, they can therefore purchase quality and cheap fertilizers and get real benefits.
The peasants apparently also tasted the sweetness of “supplemented fertilizer companiesâ€. Wang Manji, a villager in Shuangwang Town, Weinan City, Shaanxi Province, told reporters: From the fourth quarter of last year to the first of this year, the price of fertilizers rose rapidly. The maximum retail price of urea had exceeded 98 yuan/bag (50 kg, the same below), but since the province After the government imposed fertiliser price limits on two companies in Suihua and Shanhua, fertilizer prices began to fall. At present, the retail price of urea is only RMB 92/bag, which is RMB 6/bag lower than that of the previous period and RMB 160/bag for diammonium, which is RMB 10/bag lower than the previous high. "I hope that every time the fertilizer season is reached, the government will introduce a similar policy to let down the price of fertilizer," Wang Manxi said sincerely.
However, when reporters interviewed companies, it was found that some big companies did not fully agree with this policy.
“The current subsidy policy also has some problems,†said Xue Sansheng, Minister of Shaanxi Weihe Coal Chemical Group Co., Ltd., firstly, the subsidy amount is calculated according to the cost of the enterprise, ie, the enterprise with high energy consumption and high cost, and the compensation obtained is Many enterprises with advanced technology, low energy consumption, and low costs will receive less compensation and have a little “encourage backwardness and attack advanced†tastes. Second, as the target of subsidies is limited to the sales of chemical fertilizers in the province, and the strict requirements of “fixed time, fixed location, fixed quantity, fixed price, and targeted sales target†will change or even destroy the original sales channels and product regional markets. The occupancy rate disrupts the inherent market structure and even allows the company to reduce or interrupt the supply of fertilizers to customers outside the province in order to ensure the completion of the province's chemical fertilizer supply tasks and affect future sales.
Small chemical fertilizer companies have raised objections to "direct compensation for fertilizer enterprises."
Yu Yuanjun, general manager of Tiancheng Chemical Co., Ltd. of Linfen District, Xi’an City, complained to the reporter that due to the high market share of large-scale fertilizers in the local market, the price of fertilizers in a certain area can have a large or even decisive impact on the government. After the sale of fertilizers at a limited price, it was equivalent to lowering the overall price level of fertilizers in this area, and it also inhibited the increase in prices of small chemical fertilizer companies. Taking Tiancheng Company as an example, the company used Ningxia anthracite to the factory price as high as RMB 930-980/ton, up by RMB 350/ton over the same period of last year, and the price of incinerator rose by RMB 500/ton. Taking into account the increase in thermal coal, labor, and safety and environmental protection costs, the cost of tons of ammonia will increase by at least 600 yuan year-on-year, resulting in a net increase of 120 yuan per ton of ammonium bicarbonate costs. Supported by the substantial increase in costs, at present, the ex-factory price of ammonium bicarbonate in Sichuan, Hunan, Hubei and other places is generally above 580 yuan/ton, and some even exceed 600 yuan/ton, but due to the factory price limit for urea of ​​two large-scale fertilizer companies in Shaanxi Province. It was 1,650 yuan/ton, which was 75 yuan/ton lower than 1,725 ​​yuan/ton in other provinces. It suppressed the rise in ammonium bicarbonate prices. The current ex-factory price was only 530-540 yuan/ton, and the company lost more than 40 yuan/ton.
“Large companies can use government subsidies to make up for the gains and losses from cost increases and limited-price sales. Who will compensate for the losses caused by small fertilizer companies that are forced to cut their sales? If the country implements the practice of Shaanxi Province, small chemical fertilizer companies will undoubtedly worsen the situation. The collapse of bankruptcy is inevitable." Yu Yuanjun said with great anxiety.
“The practice of Shaanxi Province is worth learning and learning from, and it is promoted on the basis of summarization and improvement.†Liu Jinxiu, deputy general manager of Henan Zhongyang Dahua Group, did not hide his views. He said that starting from the overall situation of protecting the interests of the majority of farmers and ensuring the increase of grain production, the state is very necessary to limit sales of fertilizers, and fertilizer companies fully agree. However, the country should also consider the difficulties of chemical fertilizer companies. It is suggested that the relevant government departments refer to the practices of Shaanxi Province and give appropriate subsidies to the state and provincial key fertilizer companies when they limit sales. In doing so, on the one hand, it can promote domestic production and supply of chemical fertilizers, suppress large fluctuations in fertilizer prices, and protect the interests of farmers. On the other hand, due to the small number of these companies, most of them are state-owned large-scale enterprises, which are easy to control and supervise, and they can get twice the results with half the effort and have immediate results.
Xue Sanxing, head of the marketing and transportation department of Shaanxi Weihe Coal Chemical Group Co., Ltd., also stated that the subsidy policy is a good thing for chemical fertilizer producers and farmers. For enterprises, with subsidies, they can basically offset the increase in costs brought about by the increase in raw material prices, maintain a reasonable profit margin, and confidently produce chemical fertilizers. For farmers, since the government strictly controls the delivery and circulation, and requires companies to put the rated chemical fertilizers on the market, they can therefore purchase quality and cheap fertilizers and get real benefits.
The peasants apparently also tasted the sweetness of “supplemented fertilizer companiesâ€. Wang Manji, a villager in Shuangwang Town, Weinan City, Shaanxi Province, told reporters: From the fourth quarter of last year to the first of this year, the price of fertilizers rose rapidly. The maximum retail price of urea had exceeded 98 yuan/bag (50 kg, the same below), but since the province After the government imposed fertiliser price limits on two companies in Suihua and Shanhua, fertilizer prices began to fall. At present, the retail price of urea is only RMB 92/bag, which is RMB 6/bag lower than that of the previous period and RMB 160/bag for diammonium, which is RMB 10/bag lower than the previous high. "I hope that every time the fertilizer season is reached, the government will introduce a similar policy to let down the price of fertilizer," Wang Manxi said sincerely.
However, when reporters interviewed companies, it was found that some big companies did not fully agree with this policy.
“The current subsidy policy also has some problems,†said Xue Sansheng, Minister of Shaanxi Weihe Coal Chemical Group Co., Ltd., firstly, the subsidy amount is calculated according to the cost of the enterprise, ie, the enterprise with high energy consumption and high cost, and the compensation obtained is Many enterprises with advanced technology, low energy consumption, and low costs will receive less compensation and have a little “encourage backwardness and attack advanced†tastes. Second, as the target of subsidies is limited to the sales of chemical fertilizers in the province, and the strict requirements of “fixed time, fixed location, fixed quantity, fixed price, and targeted sales target†will change or even destroy the original sales channels and product regional markets. The occupancy rate disrupts the inherent market structure and even allows the company to reduce or interrupt the supply of fertilizers to customers outside the province in order to ensure the completion of the province's chemical fertilizer supply tasks and affect future sales.
Small chemical fertilizer companies have raised objections to "direct compensation for fertilizer enterprises."
Yu Yuanjun, general manager of Tiancheng Chemical Co., Ltd. of Linfen District, Xi’an City, complained to the reporter that due to the high market share of large-scale fertilizers in the local market, the price of fertilizers in a certain area can have a large or even decisive impact on the government. After the sale of fertilizers at a limited price, it was equivalent to lowering the overall price level of fertilizers in this area, and it also inhibited the increase in prices of small chemical fertilizer companies. Taking Tiancheng Company as an example, the company used Ningxia anthracite to the factory price as high as RMB 930-980/ton, up by RMB 350/ton over the same period of last year, and the price of incinerator rose by RMB 500/ton. Taking into account the increase in thermal coal, labor, and safety and environmental protection costs, the cost of tons of ammonia will increase by at least 600 yuan year-on-year, resulting in a net increase of 120 yuan per ton of ammonium bicarbonate costs. Supported by the substantial increase in costs, at present, the ex-factory price of ammonium bicarbonate in Sichuan, Hunan, Hubei and other places is generally above 580 yuan/ton, and some even exceed 600 yuan/ton, but due to the factory price limit for urea of ​​two large-scale fertilizer companies in Shaanxi Province. It was 1,650 yuan/ton, which was 75 yuan/ton lower than 1,725 ​​yuan/ton in other provinces. It suppressed the rise in ammonium bicarbonate prices. The current ex-factory price was only 530-540 yuan/ton, and the company lost more than 40 yuan/ton.
“Large companies can use government subsidies to make up for the gains and losses from cost increases and limited-price sales. Who will compensate for the losses caused by small fertilizer companies that are forced to cut their sales? If the country implements the practice of Shaanxi Province, small chemical fertilizer companies will undoubtedly worsen the situation. The collapse of bankruptcy is inevitable." Yu Yuanjun said with great anxiety.