Struggling in finding ways to reduce fertilizer prices

An Giang is a land of rice that consumes a massive amount of fertilizer, so it is desperately trying to find ways to reduce fertilizer prices when the autumn-winter crop is being sown quickly.

Unprecedentedly high fertilizer prices

Mekong Delta is currently at its peak in the autumn-winter crop, and the demand for fertilizer is enormous. At many agricultural material stores in the Mekong Delta, the price of NPK 20-20-15 Ba Con Co, NPK 20-20-15 Dau Trau and NPK 20-20-15 +TE Dau Trau ranges from VND 750,000 to 780,000 per bag.

Meanwhile, urea (nitrogen fertilizer) such as Phu My, Ninh Binh, and Ca Mau at many agricultural supply stores in Mekong Delta provinces has a retail price of up to VND 610,000 - 650,000/bag, an increase of more than 80% in total compared to the beginning of 2021 and increased by nearly 100% compared to the same period last year. Prices of many types of DAP, NPK and potassium fertilizers have also increased by 60 - 80% or more compared to the beginning of 2021. It is unprecedented for fertilizer prices to be this high.

According to Mr. Truong Kien Tho, Deputy Director of An Giang Department of Agriculture and Rural Development, the disease situation at present remains complicated, making it difficult to find output for agro-products and the price is low. On the other hand, fertilizer prices are constantly increasing, so farmers are having a very hard time. Therefore, the agricultural sector has contacted fertilizer manufacturing enterprises inside and outside the province to find solutions to reduce fertilizer prices.

In order to reduce fertilizer prices in the coming time, An Giang has proposed to the Ministry of Industry and Trade to have instructions on the balance of domestic and export fertilizers and pesticides, work with domestic fertilizer manufacturing enterprises and corporations and request to reduce exports, prioritizing fertilizers to serve domestic demand.

The agricultural sector also recommends that farmers need to strengthen program quality improvement activities such as IPM, 1P5G, 3G3T (3 decrease 3 increase)…, encouraging farmers to reduce seeding, reduce the volume of fertilizer pesticides, watering sparingly, restarting the IPM program to efficiently use fertilizers in the context of high fertilizer prices.

Clear transportation to reduce fertilizer price

With massive planting area and annual fertilizer consumption, An Giang is a potential market for fertilizer production and trading enterprises. Therefore, stabilizing the fertilizer market and preventing the current price increase is now of great urgency.

The Industry and Trade sector in An Giang has offered several solutions to support and share difficulties with farmers:

Fertilizer manufacturers should take the initiative to directly bring fertilizers to farmers through cooperatives to reduce intermediaries; cooperate with distribution channels in the province; guarantee circulation and bring fertilizer to areas in need to secure the upcoming autumn-winter and winter-spring crops.

The coordination of provinces and cities in the inter-provincial region of the Mekong Delta is essential to create the most favorable conditions for the smooth transportation and circulation of fertilizers, including waterway and terrestrial traffics.

On the businesses’ part, Mr. Phan Van Tam, Marketing Director of Binh Dien Fertilizer JSC share that at the moment, fertilizer prices in the market are increasing, the disease is progressing complicatedly, the agro-products output is facing difficulties,… Binh Dien is cutting all costs as much as possible so as not to increase prices to support farmers.

Urea price must be immediately reduced

Mr. Pham Van Long, Tan Lap commune, Tinh Bien district (An Giang) with nearly 100 ha of rice, producing 2 crops/year said that with the family's large rice production area, each crop needs a huge amount of fertilizer. If fertilizer prices keep rising as high as they are now, rice farmers will not be able to gain profit, and if the situation persists, farmers will be exhausted and likely to leave the field.

Mr. Long, representing many farmers, recommends that the functional sector must urgently step in to find a solution to immediately reduce the fertilizer prices, especially Urea which no longer has to depend much on imports as domestic enterprises have even had surplus products for export. It is necessary to strengthen the inspection and management of the fertilizer market in order to prevent acts of commercial fraud, speculation, and unreasonably raise in prices.