|
VN to import 1.2mil tonnes of fertiliser
Viet Nam will need to import roughly 750,000 tonnes of urea and 450,000-500,000 tonnes of potassium diammonium phosphate (DAP) fertiliser in 2009 to meet local demand.
The country's demand for fertilisers this year is estimated to reach 7.8 million tonnes, including 1.7 million tonnes of urea, 1.85 million tonnes of NPK (nitrogen, phosphorus and potassium), 700,000 tonnes of DAP and 1.6 million tonnes of phosphate, according to the Ministry of Industry and Trade (MoIT). At present, local producers can supply only half of the country's demand.
The MoIT has so far asked the chemical sector to fully utilise the production capacity of existing fertiliser plants and to speed up the construction of Ninh Binh, Bac Giang and Ca Mau fertiliser plants to minimise the country's dependence on imports.
According to the Ministry of Agriculture and Rural Development (MARD), the country will have to import at least 500,000 tonnes of fertilisers annually until 2010 and may only stop importing by 2020.
To minimise the dependence on imported fertiliser, the agriculture sector is boosting research and application of advanced production technologies while encouraging farmers to use bio-fertilisers to reduce production cost, according to Nguyen Tri Ngoc from the MARD's Cultivation Department.
Fertiliser prices up
Prices in the fertiliser market have resumed an upward climb from last year's slump, especially in the Mekong River Delta provinces - the country's largest rice granary.
According to independent market watchdogs, the price hike has not shown signs of slowing.
The price of Phu My urea fertiliser, for example, in the Mekong region increased from VND260,000 per pack in December 2008 to VND275,000 on January 14 and to VND315,000 on January 19.
Other kinds of fertilisers are also being sold at higher prices.
Such price hikes have caused great difficulties for Mekong farmers, who need a large volume of fertiliser for their winter-spring rice crop.
To cut costs, farmers are limiting the use of fertilisers, with the volume used for the current crop rice estimated at only 3.1 million tonnes. This is nearly 1 million tonnes less than the figure recorded in previous years, according to MARD.
With such cost-cutting by farmers, producers are now saddled with more than 2 million tonnes of unsold fertiliser.
The Viet Nam Fertiliser Association has sent a proposal to the Government, asking for help for fertiliser producers in extending their bank debts, reducing corporate income taxes and lowering lending interest rates.
As a result, the Ministry of Finance has decided to remove excise taxes on imported fertilisers including urea, ammonium sulfate, kali and ammonium phosphate.
Meanwhile, MARD has suggested that banks extend loan terms for traders who had to import fertiliser some months ago. However, economic experts said the Government should set up a fertiliser price stabilisation fund to cut costs for farmers and encourage them to buy more fertiliser.
Phu My plant puts out 3mil tonnes of urea
Phu My Nitrogenous Fertiliser and Chemical Joint Stock Corporation (DPM) early this month officially announced that the Phu My fertiliser plant in Ba Ria-Vung Tau Province had so far reached an output of 3 million tonnes of urea fertiliser since beginning operations four years ago.
DPM last year churned out 740,000 tonnes of urea fertiliser, and the corporation targeted to produce 750,000 tonnes this year.
Work on the Phu My nitrogenous fertiliser plant began in 2001 with a total investment and construction capital of US$380 million.
VietNamNet, Viet Nam News
|
