In the morning of May 27, 2013 in Ha Noi, Ministry of Industry and Trade hosted the meeting “The fertilizer market situation and state fertilizer management orientation” to get the consensus between authorities and businesses on solutions to improve the efficiency of fertilizer market management.
The meeting was chaired by Ms Ho Thi Kim Thoa, the Deputy Minister of Industry and Trade, participated by representatives of leaders of Ministry of Finance, Ministry of Agriculture and Rural Development, as well as leaders of departments and specialized agencies of the Ministry, the provincial Departments of Trade, representatives of enterprises of fertilizer production and trading, the press and media units. For PVFCCo, attending the meeting were Mr. Cao Hoai Duong – PVFCCo’s President & CEO and Mr. Nguyen Hong Vinh – PVFCCo’s Vice President & CEO.
At the meeting, delegates concentrated on discussing and evaluating the current actual situation of fertilizer production capacity, supply and consumption in our country in order to propose the orientations of state management on this product in the future. The information about the meeting was widely published on the social media. Some remarkable contents of agreed solutions agreed at the meeting are quoted as follows:
Regarding issue of legal documents, it is an urgent need to review these legal documents and build a new legal framework on fertilizer management, including putting fertilizer into the groups of products or commodities subject to conditional production and trading; new relevant Decree and Circulars shall be promulgated to provide guidelines to fertilizer management in order to add and amend regulations inconsistent with international conventions and laws, as well as to reduce administrative procedures, review the application of fertilizer catalogue, and propose relevant, feasible and strict penalties for violations in the fertilizer field. Regarding issue of quality management, the quality control work of fertilizer available in the market should be strengthened through the promulgation of standards and criteria of product quality, harsh measures taken to drive unqualified production and trading units from the market. In addition to the product origin traceability, it is required to build standard labs with the role as a referee in quality management.
Additionally, the majority of delegates at the meeting agreed to appoint a medium unit to take main responsibility of the work of state fertilizer management in both central and local levels. At the same time, the condition of budget, facilities, equipments should be improved. Personnel of the industry should be trained on knowledge and experience about fertilizer management. The fertilizer test system should be socialized to enhance capability and reduce budget burden.
Regarding the fertilizer business network, in accordance with legal regulations and market rules and ensuring the harmonization of interests of the State, enterprises and farmers, the meeting also agreed that each enterprises will build and develop a distribution system according to their business goals, financial potential, and characteristics. It cannot force enterprises to cut their intermediaries if they see these agencies necessary and optimal. Similarly, they will not have to sell products directly to farmers because this way costs them higher than through agent system. It is important to raise knowledge and skills of local distributors as it may help mobilize the participation and support of local manufacturers and authorities.
Besides, the meeting also discussed measures to minimize imbalance in supply and demand and regulate supply sources, including the import supply sources, through basic solutions such as fertilizer distribution and storage mechanism, tax policies, and technical barriers. To do this, it is necessary to establish an organization with ability to accurately forecast both domestic and international supply sources and demands of diffrent crop types, farming seasons, soil regions, prices, etc. Based on the forecasts, this organization will give advices to executive agencies and enterprises on orientation of management and regulation of distribution of stored fertilizer or make appropriate business decisions. Domestic fertilizer that meet domestic demand must be limitedly or suspensively imported through sub-gates or borders depending on different times.