The Eastern Development and Reform Commission and the Ministry of Finance recently issued a joint provincial-level fertilizer reserve plan for 2011-2012. In 2011-2012, the province's provincial fertilizer reserves in the off-season will be 200,000 tons, and the light storage period from October 1 this year to March 31 next year will be 40 yuan per ton. People in the industry believe that the small scale of the reserve and the low subsidy standards are not commensurate with the status of Shandong's major agricultural provinces and fertilizer production and consumption provinces, and it is difficult to play the role of “reservoir” and “reducing valve”.

Since the implementation of the off-season reserve system for chemical fertilizers, despite remarkable achievements, there are still two problems: First, the scale of reserves is too small. Shandong is not only a big province of chemical fertilizer production, but also a big province of fertilizer consumption. The contradiction between annual production of chemical fertilizers and seasonal consumption is more prominent. At present, the scale of the central chemical fertilizer stockpiles is 16 million tons, the province’s provincial-level chemical fertilizer stocks are 3.6 million tons, and Shandong’s chemical fertilizer stocks only account for 1/18 of the provincial scale, which is in line with Shandong’s status as a major agricultural province. Disproportionate, but also with the actual needs of the province's fertilizer production and consumption provinces are not suited. The second is that the subsidy standard is low. At present, the low-season reserve allowance for fertilizers in Shandong Province is 40 yuan per ton, which is lower than most of the provinces in China, and far lower than the average subsidy standard for central chemical fertilizers of around 100 yuan per ton.

Industry insiders from the fertilizer production companies told reporters that after the fertilizer was used in the fall, fertilizer prices continued to decline, cost pressures increased, and production companies participated in light storage. In 2011-2012, Shandong Province, including circulation companies, included only Eight companies have won the bid for the central reserve of 1.45 million tons of chemical fertilizers, while provincial-level reserves have all been stored by the five provincial agricultural distribution companies. They suggested increasing the support for the fertilizer production enterprises in the central and provincial fertilizer reserves, expanding the scale of the reserve and raising the subsidy standards.

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