09:43 AM | August 26, 2020 | Daniel Marshall
China state planner and the Finance Ministry have jointly awarded tenders for management of 10 million metric ton (MMt) chemical fertilizer reserves.
The National Development and Reform Commission and Ministry of Finance had earlier announced implementation of new nationwide measures for the management of fertilizer reserves from 1 September in a bid to ensure national food security.
The measures stipulate reserves of 8.05 MMt of spring ploughing fertilizer, which include N/P and NPK, 450,000 metric ton of disaster relief fertilizer and 1.5 MMt of potash.
Close to a hundred companies have been awarded to manage a total of 8.05 million t of spring application fertilizer reserves. These companies include major phosphate producers YUC, Wengfu, GPC, Xiangfeng and Huangmailing, which would manage the reserves jointly with distributors across the country.
The authorities state that the storage period of disaster relief fertilizer and spring ploughing fertilizer is half a year, and the distribution of disaster relief fertilizer is focused on disaster-prone areas and major grain production areas.
The off-season reserve program started about 15 years ago and has evolved with the development of Chinese fertilizer industry and market situation. The initiative of the spring ploughing reserve is to encourage production of fertilizer during the off season as the government grants subsidies to awarded companies to cover their financial cost on production and stock building between October to next March.