Recently, the Chinese government has been closely monitoring the price variations in the import commodities, such as milk powders and medicines, with a view to protect the common citizen against unfair prices, since in recent years the price of imported pesticide has risen abnormally.
Price variations have an influence not only on people's life but also on national stability. Thus, the government has the responsibility to take steps against price rise when the price has risen at unacceptable rates. Over the past years, the prices of imported commodities, such as milk powders, cars and medicines have soared drastically, leaving consumers puzzled. Also, the Chinese government should take steps against price rise to protect the domestic companies.
Lately, the market share as well as the price of imported pesticide is on the rise. As a result, price rise of imported pesticides has become farmers' burden. However, it is believed that the government of China will not hastily take measures to control the price of the imported pesticides in the near future.
Firstly, the domestic pesticide market is very small, whose annual sale is only around USD8.1–USD9.8 billion. This is mainly as pesticides is a kind of product specified for certain group of people—the farmers, and its small aggregate demand determines its low impact on people's daily life in a short term.
Additionally, domestic pesticides can be a selection to beat down the rising price of imported pesticides. China is the biggest producer of pesticides in the world. If farmers don't like imported products, they can choose the much cheaper homemade products.
On the other hand, the imported pesticides is well received by farmers. Presently, the market share of domestic pesticides has been declining year by year. In contrast, the amount of the imported pesticides is rising. According to China Customs, 35,639 tonnes of pesticides in total have been imported from January to May in 2013, up by 6.9% compared to the same period in 2012. Even though the price of imported pesticides is rising, some farmers or agencies prefer the imported pesticides rather than the domestic pesticides.
There are multiple reasons for this. Firstly, the imported pesticides are believed to be more environmentally friendly with lower toxicity, which makes them easily accepted by the market. More importantly, the imported pesticides show farmers better performance than domestic products do in terms of lowering the labor cost and ensuring the yield.
However, high price is still a headache for the domestic farmers. The continued price rise of the imported pesticides will directly increase their planting cost and decrease their profit, and thus dampen the farmers' enthusiasm.
So, if the price rises unfairly, it is possible that the Chinese government will take measures to bring imported pesticides prices under control. Threat to the national food security is the last thing the Chinese government wants to see.
In fact, many local governments have issued policies to crack down the high price of rice seed when some companies raised their rice seed prices. This may happen in China’s pesticides industry as well.
Table Contents of Insecticides China News 1308:
Shanghai port prices of major insecticides in August 2013
Ex-works prices of major insecticides in August 2013
FOB Shanghai prices of major insecticides in August 2013
Shandong plans to build 2 new pesticides projects
Output of insecticide increases by 2.20% YOY in June 2013
China's imidacloprid export continues to surge in the first four months this year
Will high price imported pesticide face any policy risk?
Jiangsu Changqing achieves good operating performance in H1 2013
Full implementation of new pesticide policy in Hainan Province finally comes true
Guangzhou Lonkey to buy 25% shares of Qiheng Agro-chemical
Brief registration overview of China's microbial insecticides
Total profit of China's chemical pesticide industry up 48.2% YOY in Jan.-May 2013
Noposion to delay resumption of trading
Lanfeng Biochemical to establish an import and export company
Huifeng Agrochemical's net profit up 54.52% year on year in H1 2013
Lier Chemical enjoys double-digit rise in revenue and net profit in H1 2013
DuPont takes multi-product strategy for chlorantraniliprole in China
China to strengthen management of neonicotinoid insecticides
Hubei Jinhaichao firstly achieves the registration of molluscacide—TDS
4 enterprise with pesticides business get into 2013 China’s top 500 enterprises
Indoxacarb TK is registered twice in July 2013
Sinochem agro actively expands overseas pesticides market
Most insecticides show price uptrend in H1 2013
Major rice pests' occurrence dynamics and trend analysis in 2013
Insecticides China News, a monthly publication issued by CCM on 10th, provides the latest and influential analysis on insecticide industry. Major contents include special report, company dynamics, market dynamics, supply and demand, price analysis, policy, raw material and intermediate.
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