The control of fertiliser production and distribution systems, to be approved this month, is expected to benefit both farmers and businesses.
Speaking at a conference on Tuesday outlining fertiliser production development for the next 10 years, the Deputy Minister of Industry and Trade (MIT), Nguyen Hai Nam, said fertiliser was a strategic product that helped ensure national food security.
Although the Government had co-operated closely with the Viet Nam Fertiliser Association in planning fertiliser production and quality, farmers were still faced with shortages and “price fever” when demand soared before planting, said Phung Ha, head of MIT’s Department of Chemicals.
Secretary of the association Nguyen Hac Thuy said there had been no clear development strategy for the fertiliser industry and that demand was unpredictable.
According to the association, farmers lose VND1.2 trillion (US$60 million) each year due to the low-quality and fake fertiliser products.
This year, the nation’s demand for fertiliser is forecast to reach 9.1 million tonnes, but domestic production can satisfy only 60 per cent of this.
A report from An Giang University’s Economics Faculty claims farmers have to buy fertilisers at prices 30-40 per cent higher than those offered by producers. They often have to buy low-quality products from small firms because State authorities can only supervise large fertiliser companies.
Ha said one of the reasons fertiliser prices were often unstable was that distribution systems developed spontaneously. Products came to farmers through many middlemen.
Ha said when planning was approved, fertiliser distribution systems would develop based on the establishment of agricultural economic areas, demand in each area, the characteristics of local economic activities and farmers’ purchasing practices.
Under the plan, from now to 2015, fertiliser distribution centres will be set up in Lao Cai, Phu Tho, Bac Giang, Hai Duong, Ninh Binh, Nghe An, Da Nang, Binh Dinh, Dac Lac, Lam Dong, Long An, An Giang, Can Tho and Kien Giang.
Phan Dinh Duc, general director of PetroVietnam Fertiliser and Chemicals Joint Stock Company, suggested that small-scale producers who did not have the financial capacity to build their own distribution systems could join those of larger companies.
Ha said to make planning more efficient, State agencies should change their ways of management. He added that producers must be granted certificates setting out conditions for business required by the Ministry of Industry and Trade. Otherwise they should not be allowed to trade.
He said this would help weed out small-scale companies using old technology and those producing low-quality fertiliser.
Head of the Ministry of Agriculture and Rural Development’s Planting Department Nguyen Tri Ngoc said management of fertiliser distribution systems should be placed in the hands of one authority to prevent overlapping among ministries and agencies.
Tri added that production standards should be completed to enable management of the industry to be tightened.
