Chemical Fertilizer Storage Policies for the Past Years

In 2004/2005, the country established a system of lighter reserves for chemical fertilizers. The 2004/2005 annual total fertilizer reserves was 8 million tons, divided into two bids, the first 605 million tons and the second 195 million tons. The proportion of urea is not specified, and only high-concentration fertilizers such as urea and ammonium phosphate are mainly used.

In 2005/2006, the total national reserve was still 8 million tons. Provinces also successively implemented the provincial chemical fertilizer reserve system, with a reserve of more than 3 million tons. It is required that the urea reserve of the winning bid enterprise accounts for more than 70% of the total reserves.

In 2006/2007, in October 2006, the 2006/2007 annual chemical fertilizer and light storage organized by the National Development and Reform Commission and the Ministry of Finance was formally launched. The total amount of light reserves is still 8 million tons, and the light storage period is from October 2006 to March 2007. Light storage is still dominated by urea, accounting for more than 70%, individual regional storage enterprises can be based on local fertilizer demand, and after reporting light and light storage units for approval, appropriate reduction in the proportion of urea, but no less than light storage 50% of the total fertilizer.

In the 2007/2008 annual tender for 2007/2008, the total scale of chemical fertilizers remained at 8 million tons, with a light storage period of six months and a total of 27 light reserves. It is required that the successful bidder should have more than 60% of urea reserves. In January 2008, the country added 2 million tons to the 2007/2008 annual off-season commercial reserves of fertilizers. This new amount has a demand for fertilizer varieties, requiring more than half of the varieties such as diammonium phosphate and phosphate compound fertilizers.

The first light storage tender for 2008/2009 was 11 million tons, an increase of 3 million tons from the previous year. Among them, the 10 million tons of light-storage indicators will give priority to the past two years to do a better job of lighter reserves of more than 40 fertilizer circulation and production companies, and the other 1 million tons will be through corporate applications, experts review the bidding method to determine the storage enterprises. Later, it also increased the special storage of phosphate fertilizer by 1 million tons, with a total amount of 12 million tons. The special bidding for phosphate fertilizer will be carried out separately. In January 2009, it increased 4 million tons to 16 million tons. Requirements of urea accounted for more than 50%.

In 2009/2010, a total of more than 70 companies participated in the light storage of chemical fertilizers. In addition, a total of 1 million tons of phosphate fertilizers was stored lightly. The total amount of light reserves in the current year was 16 million tons, which was the same as the previous year. Several other companies participated in the light storage of potash. Requirements of urea accounted for more than 50%.

In 2010/2011, the total amount of fertilizer reserves was 16 million tons. Except for the special bidding for 700,000 tons of phosphate fertilizer, the remaining 15.3 million tons of light reserves, a total of 72 companies won the bid. Among them, there are 32 manufacturing enterprises, and 12 manufacturers and circulation companies have jointly won the bid. The time of subsidy for lighter reserves was increased by one month and extended to seven months. The central government increased the subsidy by 150 million yuan. Urea is required to account for more than 40%.

The 2011/2012 annual reserves of chemical fertilizers remained at 16 million tons, of which 5.05 million tons were subject to re-tendering and the rest were naturally delayed. The fertilizer subsidy time was restored to 6 months. Encourage the circulation enterprises and production enterprises to form a consortium to bear the light storage task. On September 21, the National Development and Reform Commission issued the “Interpretation of Issues Concerning the Quotation of Chemical Fertilizers for Storage of Light Fertilizer in 2011/2012”. This is the first time that special explanations have been given for the tendering of chemical fertilizers. Urea is required to account for more than 40%.

In 2012/2013, the reserves of chemical fertilizers remained at 16 million tons. On September 26, 2012, the Department of Economic Affairs of the National Development and Reform Commission and the Ministry of Finance's Economic Development Department signed the 2012/2013 annual off-season commercial reserve agreement for fertilizers in Beijing. Circulation companies accounted for 41.5%, production enterprises accounted for 14.6%, and the conglomerates of production and distribution companies accounted for 43.9%. Urea is required to account for more than 40%.

In 2013/2014, the Department of Economy and Trade of the National Development and Reform Commission and the Department of Finance and Economics of the Ministry of Finance initiated the bidding for the qualification of the off-season commercial reserve enterprise for 2013/2014 on the 6th. The number of open tenders was 12.95 million tons, which was 12.25 million tons of fertilizer off-season commercial reserves in 2013/2014 and 700,000 tons of phosphorus fertilizer special reserves in 2014. The total amount of light reserves increased to 18 million tons, a record high. It is required that urea account for more than 70% of the total, and individual areas may be slightly lower but not less than 50%.