On March 18, during the National Conference on Stabilizing Agricultural Productivity Data organized by the National Development and Reform Commission (NDRC), Bi Jingquan, the deputy director of the NDRC, announced that seven key measures will be implemented to maintain stable prices for chemical fertilizers and other essential agricultural inputs this year. These steps aim to ensure a steady supply and prevent excessive price fluctuations that could affect farmers and food production. The first measure involves closely monitoring fertilizer manufacturers to expand their production capacity and guarantee sufficient supply. The government will also enhance energy and resource support, offering preferential policies for electricity, gas, and fertilizer usage in production. Second, the country plans to increase off-season fertilizer reserves, with the central government’s investment rising to 8 million tons this year—up from 605 million tons last year. This is intended to stabilize market supply and reduce price volatility. Third, the government will continue to regulate fertilizer exports. Building upon the suspension of export tax rebates for urea, diammonium phosphate, and monoammonium phosphate, temporary export tariffs will now apply to urea. Fourth, stricter price controls will be enforced on fertilizers. Urea produced by large nitrogen fertilizer enterprises listed under central pricing will remain under government administration, and the total profit margin from factory to retail must not exceed 7% in principle. Fifth, in case of abnormal price swings in seeds, agricultural films, or pesticides, the government will intervene using tools like price caps, rate regulations, and mandatory price declaration requirements. Sixth, companies that fail to comply with government-set pricing or margin limits will face legal consequences. Finally, local authorities will strengthen their monitoring systems for agricultural materials such as fertilizers, seeds, diesel, plastics, and pesticides to better track market trends and respond quickly. Some of these policies have been in place for years, like the regulation of fertilizer prices, while others are new this year, such as expanding off-season reserves and proactive intervention in cases of price anomalies. According to reports, existing tax exemptions and preferential rates for freight, electricity, and gas provide over 17 billion yuan in annual subsidies for fertilizer production and distribution, averaging about 160 yuan per ton of urea. This year, the supply and demand balance for chemical fertilizers in China is expected to improve. Annual production is projected to reach approximately 55 million tons, a 5.4% increase from the previous year. However, with the spring plowing season already underway, fertilizer prices may see seasonal increases. Authorities are urging close attention to market conditions, strict control over price hikes, and ensuring that the ex-factory price of urea stays within the national maximum limit.

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