Notice of the National Development and Reform Commission and Ministry of Finance People's Republic of China Concerning Reforming the Formation Mechanism of Fertilizer Prices.

国家发展改革委员会、财政部关于改革化肥价格形成机制的通知

Promulgating Institution: National Development and Reform Commission; Ministry of Finance

Document Number: Fa Gai Jia Ge [2009] No.268

Promulgating Date: 01/24/2009

Effective Date: 01/24/2009

颁布机关:国家发展和改革委员会; 财政部

文      号: 发改价格[2009]268号

颁布时间: 01/24/2009

实施时间: 01/24/2009

The development and reform commissions, price bureaus, financial departments (bureaus) of all provinces, autonomous regions and municipalities directly under the State Council of the People’s Republic of China,

To give full play to the basic role of the market in allocating resources, promote the sustained and healthy development of the fertilizer industry, ensure the domestic fertilizer supply, maintain the grain safety of the State and protect the interests of the farmers, we have, upon approval of the State Council of the People’s Republic of China, decided to promote the reform of fertilizer prices and establish the market-oriented formation mechanism of fertilizer prices. The concerned matters are hereby notified as follows:

    各省、自治区、直辖市发展改革委、物价局、财政厅(局):

    为充分发挥市场配置资源的基础性作用,促进化肥行业持续健康发展,保证国内化肥供应,保障国家粮食安全,保护农民利益,经国务院批准,决定推进化肥价格改革,建立以市场为主导的化肥价格形成机制。现就有关事项通知如下:

I. Cancelling the policies restricting fertilizer prices. The factory prices of domestic fertilizer and the free on board of imported fertilizer, except potassium fertilizer, shall be changed to be market-regulated prices from government-guided prices since January 25, 2009.And the wholesale and retail prices of fertilizer shall continue to adopt market-regulated prices. The temporary price-intervention measures shall be cancelled, such as the practices of applying for price raise, filing price adjustment for archival purpose and price ceiling for the relaxed fertilizer factory prices and the difference control over the fertilizer prices in the circulation link. The potassium fertilizer prices which are imported in general trade shall be continued to be appropriately supervised.

       一、取消化肥价格限制政策。自2009年1月25日起,将国产化肥出厂价格、除钾肥外的进口化肥港口交货价格由政府指导价改为市场调节价。化肥批发、零售价格继续实行市场调节价。取消对已放开的化肥出厂价格实行提价申报、调价备案、最高限价以及对化肥流通环节价格实行差率控制等各项临时价格干预措施。继续对一般贸易进口钾肥价格实行适度监管。

II. Doing a good job in implementing various preferential policies to promote the fertilizer manufacturing and circulation. The price preferential policies for the electricity and gas in fertilizer manufacturing and railway transportation and the preferential tax policies for the fertilizer manufacturing and circulation shall be temporarily maintained. The price and finance authorities at all levels shall supervise and urge relevant departments and enterprises to conscientiously implement all preferential policies and strictly rectify, investigate and punish any acts in violation of the policies of the State.

       二、落实好促进化肥生产流通的各项优惠政策。暂时保留对化肥生产用电、用气和铁路运输实行的价格优惠政策以及对化肥生产、流通实行的税收优惠政策。各级价格、财政主管部门要督促有关部门、有关企业落实好各项优惠政策,切实纠正和查处不执行国家政策的行为。

III. Adopting comprehensive measures to maintain the stability of the fertilizer market. Measures such as adjustment by import and export volumes, reserve control, coordinating dispatchment and market supervision shall be utilized comprehensively to guarantee the fertilizer supply and maintain market stability. We shall continue to implement the policies to encourage fertilizer import and raw materials thereof and to control export. The commercial reserve systems in slack seasons of fertilizer sales shall be improved, the reserve scale be reasonably arranged and the regional distribution be optimized. Related departments in all areas shall correspondingly establish and improve the local reserves in slack seasons of fertilizer sales according to the needs of agricultural production. They shall continue to coordinate and guarantee such raw material supply as coal, electricity and gas for major fertilizer manufacturing enterprises, actively organize the dispatchment of fertilizer and the raw materials thereof, and give priority to the transportation of fertilizer as significant materials to promote the fertilizer manufacturing and circulation. They shall continue to strengthen supervision over the fertilizer market and severely crack down the acts of manufacturing and selling counterfeit, false and low-quality fertilizer by deceiving the farmers and harming the agricultural development, to maintain the good market order.

       三、采取综合措施保持化肥市场稳定。综合运用进出口调节、储备调控、协调调运、市场监管等手段,保障化肥供应,保持市场稳定。继续实行鼓励化肥及其原材料进口、控制出口的政策。完善化肥淡季商业储备制度,合理安排储备规模,优化区域布局。各地要根据农业生产需要,相应建立和完善地方化肥淡季储备。继续协调保障重点化肥生产企业用煤、用电、用气等原材料供应,积极组织化肥及其原材料调运,将化肥作为重点物资优先保障运输,促进化肥生产流通。继续加强化肥市场监管,严厉打击生产、销售假冒伪劣化肥的坑农害农行为,维护良好市场秩序。

IV. Improving the adjustment mechanism of general subsidies for purchasing agricultural supplies. With comprehensive consideration of the effect on the profits of grain-growing farmers by the changed prices of agricultural supplies such as fertilizer and diesel oil and the changed grain prices, we shall raise the prices of agricultural supplies and increase general subsidies for purchasing agricultural supplies, raise the minimum grain purchase prices and the temporary purchase and reserve prices, and other hooking mechanisms, where the general subsidies for purchasing agricultural supplies shall never be reduced to ensure that the profits of grain-growing farmers shall not be reduced because of the raised prices of agricultural supplies.

       四、完善农资综合补贴调整机制。综合考虑化肥、柴油等农资价格和粮食价格变动对农民种粮收益的影响,实行农资价格上涨与增加农资综合补贴和提高粮食最低收购价、临时收储价等挂钩机制,农资综合补贴只增不减,确保农民种粮收益不因农资价格上涨而下降。

V. Intensifying monitoring, supervision and inspection over the fertilizer market prices. When the formation mechanism of fertilizer prices has been reformed, the price authorities in all areas shall intensify the monitoring and early warning analysis of the fertilizer market and its prices, pay close attention to the market trend and properly guide the market expectation. In case of any abnormal circumstances, they shall make timely reports to the local government and the authority at a higher level and study on relevant policies and measures to guarantee supply and maintain market stability. The work of monitoring and inspecting the fertilizer market prices shall be continued to severely crack down the price-related violations, such as hording for speculation, colluding to hold up prices and failing to sell fertilizer at marked prices, in order to maintain the normal market price order.

       五、加强化肥市场价格监测和监督检查。改革化肥价格形成机制后,各地价格主管部门要加强对化肥市场及价格情况的监测和预警分析,密切关注市场动态,合理引导市场预期。出现异常情况,要及时报告当地政府及上级部门,研究提出保障供应、稳定市场的政策措施。继续做好化肥市场价格监督检查工作,严厉打击囤积居奇、串通涨价、哄抬价格、不明码标价等价格违法行为,维护正常市场价格秩序。

VI. Doing a good job in organization and implementation. The price authorities in all areas shall, in accordance with the requirements of This Notice and in combination with local actual conditions, conscientiously do a good job in implementing the reform of the formation mechanism of fertilizer prices, timely cancel the policies restricting fertilizer factory (import) prices which are under local administration, and cancel the temporary price-intervention measures released by the local departments such as difference control over the fertilizer prices in the circulation link in order to ensure the smooth progress of the reform. The finance authorities in all areas shall intensify the supervision over the general subsidies funds for purchasing agricultural supplies and use the said funds for the designated purpose to ensure that the subsidies funds are delivered to the grain-growing farmers in time and in full.

National Development and Reform Commission

Ministry of Finance People's Republic of China

January 24, 2009

       六、做好组织落实工作。各地价格主管部门要根据本通知要求，结合各地实际，认真做好改革化肥价格形成机制的落实工作，及时取消地方管理的化肥出厂（进口）价格限制政策，取消地方出台的对化肥流通环节实行差率控制等临时价格干预措施，确保改革顺利进行。各地财政主管部门要加强对农资综合补贴资金的监管，做到专款专用，确保补贴资金及时足额发放到种粮农民手中。

财政部

国家发展改革委员会

2009年1月24日