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    Home > Agriculture News > Fertilizer News > Preferential policies are gradually cancelled for the urea industry to accelerate the process of marketization

    Preferential policies are gradually cancelled for the urea industry to accelerate the process of marketization

    • Last Update: 2022-03-25
    • Source: Internet
    • Author: User
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    Chemical fertilizer is one of the important means of agricultural production, and urea is the most important type of fertilizer in chemical fertilizers.
    In the early stage of reform and opening up, the state gave the fertilizer industry to ensure grain output and ensure that fertilizer prices do not change significantly with economic development.
    A series of preferential measures help companies reduce production costs.
    Since 2012, urea production capacity has increased rapidly, and the industry's overcapacity has become more and more prominent.
    With the arrival of the "13th Five-Year Plan", the country has become more and more aware of the importance of capacity reduction.
    In 2015, the cancellation of industry preferential policies such as tariff adjustments, cancellation of preferential electricity prices, and resumption of value-added tax have all proved the country's change in the later development strategy of the industry.
    Regardless of the situation of the industry in 2015 or the future development of 2016, it can show the rapid development of the marketization process of the urea industry.
    Figure: Review of industry events in 2015 In 2015, many preferential policies were cancelled, prompting the gradual transformation of urea products into bulk commodities.
    Moreover, the implementation of the zero-growth program of chemical fertilizers shows the country's change in the concept of chemical fertilizer use.
    By focusing on fertilizer efficiency, we will eliminate traditional fertilizers and promote the marketization of the industry.
    Industry development measures in 2016 From the perspective of industry policies, electricity prices will be raised again on April 20, 2016 to ensure that the preferential electricity prices in the fertilizer industry will be completely eliminated.
    By then, the cost of fertilizer companies will increase again, which will be even worse for the traditional urea industry.
    , Can promote the gradual elimination of backward production capacity, and the complete cancellation of preferential electricity prices for chemical fertilizers, not only can promote the elimination of backward production capacity, but also show that the urea industry will gradually get rid of government policy dependence and gradually move towards a road of complete marketization.
    From the perspective of the industry itself, the road to marketization has slowly begun to emerge.
    At the end of 2015, Zhengzhou Commodity Exchange held a urea futures contract rules demonstration meeting.
    It will be inevitable that urea futures will go online in the later period.
    This change in trading methods also fully demonstrates that urea is gradually conforming to the characteristics of bulk products, indicating the urea industry More and more to the road of marketization.
    In the future development trend, the days when the chemical fertilizer industry relied on government subsidies are gone, and the road to marketization will be an irreversible development trend.
    Only in this way can we eliminate outdated production capacity and promote the healthy development of the industry.
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