Reliance on administrative measures eventually failed to meet the market's effect of limiting the retail price of urea in Shaanxi
After more than ten days of operation, the practice of limiting the retail price of urea in Shaanxi province proved to be ineffective. The Deputy Director of the Price Investigation Team of Shaanxi Provincial Price Bureau, Yunyu Bing, told reporters on July 19 that the latest monitoring of fertilizer prices showed that the average retail price of urea in Shaanxi Province was 1940 to 1960 yuan/ton, which was still higher by 100 per ton than in May. Diversified.
It is understood that on July 1st, the state waived the value-added tax for urea production enterprises in full, and at the same time clearly stipulated the urea factory price limit. Since its implementation, the urea production enterprises in Shaanxi Province have not touched on the “high-voltage line†of the price limit. The general fees for transportation, miscellaneous fees, and handling charges are also fixed. It should be said that the retail price of urea should be stabilized, but the price of fertilizer market in Shaanxi is Still rising trend. Therefore, the Shaanxi Provincial Price Bureau issued an emergency notice on July 8th to implement a ceiling price management on the retail price of urea to stabilize fertilizer prices and protect the interests of farmers. The specific operation requires the local price departments to formulate a maximum urea retail price, based on the urea ex-factory price plus the stipulated comprehensive rate (7%) and reasonable transportation fees, loading and unloading fees, etc. It can also be based on the local market in mid-May. The retail price is determined by the reasonable price level. At the same time, it organized efforts to strengthen the price supervision and inspection of the fertilizer market. However, in the past ten days or so, the price of the fertilizer market has remained high.
According to Yun Yubing’s analysis, the annual demand for urea in Shaanxi Province is about 1 million tons. The output of fertilizer companies in the province could have met the market demand, but most of them have gone out of the province. This has caused the contradiction between supply and demand of urea in Shaanxi Province to be outstanding and the market gap is 80. About 10,000 tons, so the retail price of urea rose too fast.
The reporter interviewed sales managers of several fertilizer production companies in Shaanxi Province. They said that at present, companies are executed in accordance with the contract signed with the distributor. They also believe that restricting the retail price of the market is not the same as limiting the ex-factory price of fertilizer, because the high retail price is the result of market adjustment. As long as other provinces and cities have higher prices, the price of local chemical fertilizers cannot really come down. Limiting retail prices in a certain area simply does not work, and it is necessary to limit prices unless the country acts in a unified manner.
It is understood that Anhui and other provinces have also limited the retail price of urea, but the effect is not satisfactory.
It is understood that on July 1st, the state waived the value-added tax for urea production enterprises in full, and at the same time clearly stipulated the urea factory price limit. Since its implementation, the urea production enterprises in Shaanxi Province have not touched on the “high-voltage line†of the price limit. The general fees for transportation, miscellaneous fees, and handling charges are also fixed. It should be said that the retail price of urea should be stabilized, but the price of fertilizer market in Shaanxi is Still rising trend. Therefore, the Shaanxi Provincial Price Bureau issued an emergency notice on July 8th to implement a ceiling price management on the retail price of urea to stabilize fertilizer prices and protect the interests of farmers. The specific operation requires the local price departments to formulate a maximum urea retail price, based on the urea ex-factory price plus the stipulated comprehensive rate (7%) and reasonable transportation fees, loading and unloading fees, etc. It can also be based on the local market in mid-May. The retail price is determined by the reasonable price level. At the same time, it organized efforts to strengthen the price supervision and inspection of the fertilizer market. However, in the past ten days or so, the price of the fertilizer market has remained high.
According to Yun Yubing’s analysis, the annual demand for urea in Shaanxi Province is about 1 million tons. The output of fertilizer companies in the province could have met the market demand, but most of them have gone out of the province. This has caused the contradiction between supply and demand of urea in Shaanxi Province to be outstanding and the market gap is 80. About 10,000 tons, so the retail price of urea rose too fast.
The reporter interviewed sales managers of several fertilizer production companies in Shaanxi Province. They said that at present, companies are executed in accordance with the contract signed with the distributor. They also believe that restricting the retail price of the market is not the same as limiting the ex-factory price of fertilizer, because the high retail price is the result of market adjustment. As long as other provinces and cities have higher prices, the price of local chemical fertilizers cannot really come down. Limiting retail prices in a certain area simply does not work, and it is necessary to limit prices unless the country acts in a unified manner.
It is understood that Anhui and other provinces have also limited the retail price of urea, but the effect is not satisfactory.
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