According to the General Administration of Customs,
export value in Aug. this year increased by 2.7% year on year. The figure was
up slightly from 1% in July, but it was still lower than expectation. Besides,
due to the weaker demand from foreign customers, especially the ones from China Europe, the situation may continue in the next few months
As for pesticide, the export situation is a little better.
pesticide export volume and value ran up in the first half of 2012. The total
pesticide export volume and value in this period realized growth rates of 11%
and 15% over H1 2011, reaching 473,200 tonnes and USD1.48 billion respectively
(Crop Protection China News, 1217). However, the total export value in July
2012 reached USD176.94 billion, down 1.8% over June 2012. Some domestic
analysts predicted that the export data in Aug. will not be optimistic for the
export value in Aug. may continue to face a negative growth. China
The growth rate of
China's export value may be lower than the
target of 10% set for this year, which will pose challenge to 's
economy. Many companies expect the government to launch policies such as
increasing export rebate to promote export. China
Export rebate, a general and widely used financial strategy to encourage or adjust product export, has played an important role in the past years.
Based on the past experience, it is possible for the government to increase export rebate. Since 2008, Chinese government has raised the export rebate for seven times to promote export, including raising the export rebate for some pesticides in 2008 and 2009.
However, for pesticides, the government does not always raise export rebate. In fact, the government reduces export rebate for pesticide more than increasing export rebate in recent years.
On 15 Sept., 2006,
the export rebate of 25 pesticides and intermediates. China
On 1 Aug., 2008,
reduced and abolished the export rebate of over 20 pesticides. China
In late 2008,
the export rebate of some pesticides, aiming to boost pesticide export under
the global economic depression. China
the export rebate for some pesticides as the industry was still hit hard by the
weak export. China
On 15 July, 2010,
China abolished export rebate again for some
pesticides, including the most important pesticide in ,
glyphosate (technical). China
Although some pesticides companies very look forward to the increase of export rebate, CCM thinks that there is no need for the government to do so.
First, with the increase of export rebate, domestic producers may reduce the export price, and their competitiveness in the market will be strengthened, but not too much. The global demand of pesticide more relies on the occurrence of the pests and disease and the price of crops, but is impacted less by the slight change of the pesticide price.
pesticide price is very low at present and it has brought about anti-dumping
accusation in overseas markets. Raising export rebate will only worsen trade
Third, lower export rebate will pose pressure on domestic pesticide industry in the short term, but it is a piece of good news for the healthy development of domestic pesticide industry in the long term. Low industry threshold and lack of government administration had led to severe overcapacity and irrational market competition of pesticide in
resulting in extremely low price and slim profit. As China aims to accelerate the
industry integration and then forms a relatively rational market, maintaining
the current export rebate or even reducing it is expected to be an inevitable
According to the export rebate policies released by the government in recent years, most of the products that with export rebate reduced or abolished are high-energy consuming, high pollution or resource-intensive products. With export rebate reduced or abolished, some companies with bad performance are expected to exit pesticide business, thus easing the serious overcapacity problem.
Although the export rebate raise for pesticides is not recommended, CCM thinks the government should adjust the export rebate policy of pesticide technical and pesticide formulation. At present, the export rebates for most pesticide technical is 9% and for pesticide formulation is 5%, which is unreasonable.
Domestic enterprises still more act as pesticide technical suppliers in the chain of international pesticide trade and the profit is slim. Meanwhile, the pollution caused by producing pesticide technical is very serious in
, compared with the production
of pesticide formulation. China
The government should adjust the export rebate policy of pesticide technical and pesticide formulation to better facilitate its own formulation brand products to enter international terminal market.
pesticide formulation export volume exceeded the export volume of pesticides
technical for the first time, a remarkable achievement for domestic pesticide
industry. However, China 's
pesticide formulation still stays in a poor status in global market, and more
policies are needed to promote it. China
Source: Crop Protection
News 1218 China
Content of Crop Protection China News 1218：
increase pesticide export rebate? China
Selling highly toxic pesticide now faces arrest
Huayang Group's withdraw from Huayang Technology finally
Seed coating agent eyes bright prospect
Needs special agents for unmanned helicopter urgently in
Some pesticide techncials firstly registered by domestic companies
Crop Protection China News, a monthly publication issued by CCM on 15th&31th of every month, offers timely update and close follow-up of
Crop Protection industry dynamics,
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