Fungicides China Monthly Report

In March, COVID-19 broke out globally. Pesticide exporters may face more challenges, like restricted transportation. In order to stabilise export, the Ministry of Finance and the State Administration of Taxation issued the Announcement on Increasing Tax Rebate Rates for Certain Exports. According to the Announcement, the tax rebate rate for agrochemical TC exports taxed at 13% is increased to 13%. Agrochemical formulation exports are taxed at either 13% or 9%. For those taxed at 13%, the tax rebate rate is raised to 13%, and for those taxed at 9%, the tax rebate rate is increased to 9%. Besides, the MOA is to introduce new policies on the registration and management of the Pesticides Used Overseas Only, thus deepening administrative reform and responding to the outbreak of COVID-19.

As of the end of March, the COVID-19 outbreak in China has been under control. In mid-March, Hubei Province issued a notice on promoting the orderly resumption of work and the safe movement of personnel in the province. The province will stagger the resumption of enterprises. The areas in the province (except for Wuhan City) are to lift the outbound travel restrictions from 25 March, and Wuhan City will lift the outbound transportation ban from 8 April. 

In addition, experts predict that 2020 will face a relatively heavy outbreak of crop diseases and pests in China. It is understood that at present, there is an urgent need for agrochemicals that can prevent and treat wheat stripe rust, fusarium blight, and rape sclerotinia. Among the 156 producers who are capable of producing them, altogether 94% have resumed work, which in total can provide 65,000 tonnes of the agrochemicals to meet the demand. 

The USD/CNY exchange rate in this newsletter is USD1.00=CNY 6.9811 on 2 March, 2020, sourced from the People's Bank of China. All the prices mentioned in this newsletter will include the VAT, unless otherwise specified.