Stabilise fertiliser prices, say experts

Supplies of fertiliser must be ensured to stabilise rising fertiliser prices and meet demand in the domestic market, said experts at a workshop in northern Nam Dinh Province last Friday.

Le Viet Nga, deputy head of the Ministry of Industry and Trade’s Domestic Market Department, said that actively balancing supply and demand would help stabilise domestic fertiliser prices.

The ministry planned to require fertiliser producers and importers to keep a stockpile of fertiliser to avoid price increases due to shortages of supply, she said.

“They should also improve the efficiency of their direct distribution system to ensure that fertiliser is delivered directly to farmers,” said Nga.

Nguyen Anh Tuan, deputy head of the Ministry of Finance’s Price Management Department, agreed that stability in supply and demand of fertiliser would be the most important factor in settling the domestic fertiliser market.

The Ministry of Finance would manage supply and demand by adjusting taxes and import-export policies, including increases of export tax and cuts in import tax.

There was also a proposal to temporarily halt exports of certain types of fertiliser during specific periods, Tuan said.

Ho Thi Kim Thoa, deputy minister of Industry and Trade, said Viet Nam had promoted investment in fertiliser projects to meet demand for fertiliser in the domestic market.

Nguyen Dinh Hac Thuy, general secretary of the Viet Nam Fertiliser Association, said fertiliser prices were at VND9,500 per kilo for imported fertiliser and VND8,500 per kilo for Phu My fertiliser products made by the PetroVietnam Fertiliser and Chemical Products Corporation (PVFCCo).

The prices of fertiliser products would increase in the coming time due to rising demand. Phu My fertiliser products had met only 40 per cent of market demand with imports having to cover the remainder, Thuy said.

World fertiliser prices were on the rise and importers had limited the amount of imports to avoid losses due to higher selling prices for the imported fertiliser against domestic fertiliser, he said. — VNS

Tags: Vietnam Fertiliser prices