Xinjiang issues interim measures for commercial fertiliser reserves 01-18-2024

Summary: Commercial fertiliser reserves of Xinjiang include MAP and DAP, with annual reserves hitting 200,000 tonnes.

On 4 Dec., 2023, Xinjiang Uygur Autonomous Region released the Interim Measures for Commercial Fertiliser reserves in Xinjiang, which specifies the types and scales of fertiliser reserves. More details are shown as below:

  • Types and scales of fertiliser reserves: the total annual commercial reserves of fertilisers are 200,000 tonnes, all of which are phosphate fertilisers. Specifically, the reserves of monoammonium phosphate (MAP) are 70,000 tonnes and the reserves of diammonium phosphate (DAP) are 130,000 tonnes.
  • Key layout areas for reserves: main grain and cotton production areas and the core logistics hubs for easy transportation of grain including Ili Kazakh Autonomous Prefecture, Tarbagatay Prefecture, Changji Hui Autonomous Prefecture, Bayingol Mongolian Autonomous Prefecture, Aksu Prefecture, and Kashgar Prefecture.
  • Reserve period: from 1 Sept. to 31 March, for a continuous period of six months each year.

    Enterprises maintaining phosphate fertiliser reserves are determined through bidding; they must be fertiliser production or circulation enterprises within Xinjiang, with registered capital of no less than USD7.03 million (RMB50.00 million); they should also be subject to certain conditions including fertiliser storage capacity and credit. Enterprises undertaking fertiliser reserves can apply for loan support from banks and enjoy a four-month loan interest subsidy provided by the Xinjiang government for necessary funds. When Xinjiang needs to release reserved fertilisers to the market, the price of the storage enterprises should not exceed the average phosphate fertiliser price revealed by the National Bureau of Statistics or supply and marketing cooperatives to stabilise market prices of phosphate fertilisers.


    Commercial fertiliser reserve is an important mean of regulating seasonal shortage and stabilising fertiliser market prices. Xinjiang is the second largest province in terms of phosphate fertiliser application. According to the National Bureau of Statistics, in 2022, the application amount of agricultural phosphate fertilisers in China was 5.63 million tonnes, 586,000 tonnes of which was from Xinjiang, accounting for 10.41%. However, Xinjiang generally purchases phosphate fertilisers from other provinces and does not have the ability to produce phosphate fertilisers independently. Therefore, Xinjiang may face problems of seasonal shortage and long-distance transportation between production and sales areas. The commercial fertiliser reserves can enable Xinjiang to stabilise phosphate fertiliser prices, cope with market risks, and reduce the impact of disasters on agricultural production.


    More information can be found at CCM Phosphorus Industry China Monthly Report.

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