Farmers anxious as fertiliser prices increase

Fertiliser prices in the Cuu Long (Mekong) Delta have increased by an average of VND1,200 per kilogramme in recent days.

In An Giang Province, the price of a 50-kg bag of Chinese urea fertiliser went up from VND365,000 to VND425,000.

A 50-kg bag of NPK fertiliser now costs around VND460,000, an increase of VND35,000, and that of South Korea DAP of similar weight has increased by VND60,000 to VND710,000.

Traders in agricultural material shops have blamed the price rise on appreciation of the US dollar against the Vietnamese dong and higher prices of fertiliser in the world market.

Viet Nam has had to import a large volume of fertiliser a year to satisfy local demand since local production meets only 40 per cent of consumption, according to the Viet Nam National Chemical Group (Vinachem), noting that domestic fertiliser prices will also be affected by fluctuations in world prices.

Some fertilisers, including the DAP and SA, as well as potash, must be imported because local companies are currently unable to produce them.

The country imported more than 2.1 million tonnes of fertilisers in the first nine months of the year to serve agricultural production, according to the Ministry of Industry and Trade.

It is expected to import about 400,000 tonnes of DAP fertiliser from now to the year-end to serve the 2010-11 winter-spring crop.

Demand for urea fertiliser as well as other fertilisers is expected to increase strongly in later next month when farmers start planting their 2010-11 winter-spring crop, the region’s main rice crop.

In addition, the smaller flooding levels in the delta this year will not bring much deposits of soil to the region, and demand for fertilisers therefore is expected to be higher than previous years.

The delta’s fertility in part depends on the annual flooding regime of the Mekong River that brings in topsoil from other regions and deposits it here before it enters the sea.

Most farmers are worried about the losses they could incur because of higher production costs.

To ensure stable fertiliser supply for the upcoming rice crop, the Ministry of Agriculture and Rural Development has suggested that the Ministry of Industry and Trade not permit domestic fertiliser producers to export their products, especially urea and DAP fertilisers.

It also ordered relevant agencies to enhance inspection of the fertiliser market to prevent importers from indulging in speculation in order to raise prices even further.

The Cultivation Department has recommended that farmers to apply more advanced technology in rice production and cut unnecessary expenses to reduce production costs.

Rice production needs the highest consumption of fertilisers in Viet Nam. The Mekong Delta and southeastern regions account for 65.4 per cent of total land used for agricultural production, and are the country’s biggest fertiliser markets. — VNS

Tags: Vietnam Fertiliser prices