Ha Noi (VNA) – Fertiliser prices have risen another 70-100,000 per 50 kg bag in the Mekong River Delta, a record after stabilizing at decade high levels for a lengthy period.
Global supply is expected to be limited this year due to a shortage of raw materials needed for production, which should cause sharp price hikes for the finished product, according to the Viet Nam Chemical Corporation (Vinachem)
Policy in China – Viet Nam ’s main supplier – is anticipated to only worsen the situation. The world’s fasted growing economy plans to reduce its fertilizer exports while raising its export duty to between 20-30 percent this year.
DAP fertilizer currently fetches 600-610 USD per tonne on the world market, a 100 USD increase against the previous month, with Chinese urea fetching 350-355 USD per tonne.
As a result, the nation’s farmers are unable to buy enough fertilizer, while local producers cannot satisfy domestic demand; Viet Nam is therefore heavily reliant on imports.
NPK fertilizer now costs 550,000 VND per bag; urea fertilizer 335,000 VND per bag and phosphate fertilizer 115,000 VND per bag.
According to Vinachem, annual consumption of urea and phosphate fertilizer will fall well short of domestic production, which will hit the Mekong River Delta’s winter-spring crop particularly hard.
In the only bright note annual output of 3 million tones of NPK fertilizer is forecast to be enough to meet estimated domestic demand of 2.5 million tonnes.-Enditem
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