Fertiliser prices continue to increase: MoIT
Fertiliser prices continue to increase: MoIT
Fertiliser prices are forecast to continue to grow for the rest of the year, caused by a number of factors including higher shipping costs, a representative of the Chemical Department said.
Speaking at the Ministry of Industry and Trade (MoIT)’s monthly press conference held on Thursday, Luu Hoang Ngoc, deputy director of the MoIT’s Chemical Department said: "The fertiliser price fluctuation in 2021 is similar to that in 2008, and the prices will continue to increase from now until the end of the year."
The main factor pushing up prices is higher cost to hire shipping containers, while imported fertilisers, such as diammonium phosphate (DAP), mono-ammonium phosphate (MAP) and urea, are mainly transported on containers.
Currently, the cost to hire shipping containers has increased five times compared to the previous year.
In addition, fertiliser supply in Southeast Asia has declined as many factories have entered the period of maintenance.
The price of raw materials has increased on the world market so the price of domestically-made fertiliser products has also soared, according to the Chemical Department.
At present, the Ministry of Agriculture and Rural Development (MARD) manages production, trading, and import-export of none organic and organic fertilisers.
However, "the MoIT manages import-export activities and the domestic market, working closely with MARD to ensure supply," Ngoc said.
According to Le Trieu Dung, director of the MoIT’s Trade Remedies Department, the strong increase in prices started early 2021. The reason has been mainly due to the increase in cost of material for production of DAP and MAP fertilisers, of which the price surged by two times for sulfur and 30 per cent for ammonia.
However, after assessing supply and demand, the MARD and MoIT have found that there is enough fertiliser supply for domestic use.
“The supply of fertilisers, especially DAP fertilisers, is still enough for the domestic needs," Dung said.
"Specifically, the import of DAP and MAP fertilisers from the beginning of the year to now increased by 50 per cent, while the domestic production also increased by about 30 per cent.”
In addition, the prices of domestically-produced DAP and MAP fertilisers are between VND8-10 million per tonne, lower than the price of imported fertiliser at VND14-15 million per tonne. This is also a factor helping to stabilise the domestic market.
Over the past month, the MoIT has taken safeguard measures for imported DAP and MAP fertilisers to protect domestic production. After an investigation on import fertiliser, the ministry has issued a decision to impose taxes on those products from 2017, according to Dung.
In the future, the MoIT will continue to coordinate with the MARD to monitor the fertiliser market and have measures to stabilise the market.
