China saw utilization rate of chemical fertilizer in grain crops including rice, corn and wheat this year stand at 35.2 percent, up 2.2 percentage points from that in 2013, while that of the pesticide in the grain crops was 36.6 percent, up 1.6 percentage points from that in 2013, according to Zeng Yande, a senior official of the Ministry of Agriculture (MOA) on Wednesday [2 December 2015]…Full Article: Xinhua Finance Dec 2015

Key Point

  • According to a Ministry of Agriculture representative, China will attempt to lower its fertilizer and pesticide utilization annual growth rate by less than 1% in the near future. Afterwards, China hopes to lower this rate to 0.2% to 0.3%, dropping it to 0% by 2020.

ChinaAg Comments

  • In August 2015, China’s Ministry of Finance, Central Administration of Customs and State Administration of Taxation announced it would resume imposing value-added taxes on fertilizer sales and imports (halted in 1994).
  • In July 2015, China announced fertilizer and pesticide usage would be “capped” by 2020. Its Ministry of Agriculture stated that less than 33% of fertilizers and pesticides are absorbed by crops.
  • In June 2015, China announced it would construct 80 “eco-friendly” vegetable plots in Beijing, Tianjin and Hebei in accordance with the quality control standards of Beijing. These standards primarily focus on limiting the use of pesticides.
  • In December 2014, a Chief Researcher at the Botany Institute of the Chinese Academy of Sciences stated that China utilizes 400 kg of chemical fertilizers per hectare, well above the internationally recognized safe average of 225 kg per ha.
  • In late 2013, China announced it would halt agricultural production on ~3.33 million hectares of land owing to soil pollution (e.g. heavy metals, pesticides, and additives).
  • In 2012, China consumed 58.3 million metric tons of chemical fertilizers, of which 48% (~23.9 million MTs) was nitrogenous fertilizer, 34% (~19.8 million MTs) was compound fertilizer (e.g. NPK, etc.), 14% (~8.2 million MTs) was potash, and 11% (~6.1 million MTs) was phosphate. Henan, Hubei, and Sichuan were the largest consumers.
  • In 1994, China exempted fertilizer sales and imports from VAT in order to maintain a stable fertilizer supply and prices.

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