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