On March 18, during the National Conference on Stabilizing Agricultural Productivity Data hosted by the National Development and Reform Commission (NDRC), Bi Jingquan, 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 actions aim to support farmers and ensure food security amid rising global input costs. First, the government will closely monitor fertilizer production enterprises to boost capacity and guarantee supply. Additionally, preferential policies on electricity, gas, and fuel use for fertilizer manufacturers will be strengthened. Second, off-season reserves of chemical fertilizers will be increased, with the central government's investment reaching 8 million tons this year—up from 605 million tons last year. Third, export controls will remain in place, including a temporary export tariff on urea, following the suspension of export tax rebates on urea, diammonium phosphate, and monoammonium phosphate. Fourth, price regulation will be tightened, with government pricing continuing for large nitrogen fertilizer producers listed in the central pricing catalog. The overall profit margin from factory to retail must not exceed 7% in principle. Fifth, if seed, plastic film, or pesticide prices show abnormal fluctuations, the government will intervene through measures like price caps, inequality rate controls, and mandatory price declarations. Sixth, any fertilizer producers or distributors failing to comply with government pricing or margin regulations will face strict legal penalties. Lastly, local authorities responsible for agriculture and pricing will enhance monitoring systems for fertilizers, seeds, diesel, agricultural plastics, and pesticides to track market trends more effectively. Some of these policies have been in place for years, while others are new this year, such as expanding off-season reserves and introducing intervention mechanisms for sudden price spikes. According to reports, existing tax exemptions and preferential rates for freight, electricity, and gas cost the government over 17 billion yuan annually, equivalent to about 160 yuan per ton of urea. This year, China’s chemical fertilizer supply and demand situation is expected to improve, with annual production projected at around 55 million tons—an increase of 5.4% compared to last year. However, with the spring plowing season underway, fertilizer prices may rise seasonally. Authorities will closely monitor the market, strictly control price hikes, and ensure that the ex-factory price of urea remains within the national maximum limit.

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