Stable fertiliser prices predicted

Domestic fertiliser prices are expected to remain stable this year due to ample supplies, according to the Ministry of Industry and Trade.

Only the northern region would be vulnerable to a modest price increase due to heavier demand, the ministry said, but the period of high demand in the south had passed. Meanwhile, the ministry predicted that global prices would continue to be stable.

Supplies of fertiliser for the winter-spring rice crop were currently at more than 750,000 tonnes, sufficient to prevent any price fever from breaking out, said Viet Nam Fertiliser Association general secretary Nguyen Hac Thuy.

The domestic price of urea fertiliser was at VND8,000/kg (US$0.38), consistent with world fertiliser price, said Thuy.

To ensure the ongoing stability of the domestic fertiliser market, the association had proposed that the Government require domestic fertiliser producers to operate at full capacity and temporarily stop exports, he added.

But the industry would require more investment to increase capacity, countered Lam Thao Fertiliser and Chemical Joint Stock Co general director Quach Dinh Dieu.

The State needed to offer incentives for domestic fertiliser producers to improve their competitiveness, including loans at preferential interest rates and protection against foreign exchange fluctuations, Dieu said.

Phung Ha, head of the Ministry of Industry and Trade’s chemical department, said Viet Nam should develop a large-scale fertiliser industry with modern technology and an effective distribution system to ensure quality, supply and reasonable prices. — VNS

Tags: Vietnam Fertiliser prices