Wednesday, July 18, 2012

Enterprises Appeal for Policy Support for Pesticide Formulation Export

On 7 June, 2012, the 18th Conference of the 5th Council of China Crop Protection Industry Association was successfully held in Nanchang City of Jiangxi Province, participated by nearly 200 experts from pesticide R&D, production and management departments. A large number of domestic enterprises appealed for policy support for pesticide formulation export at the meeting, according to CCM International’s July issue of Fungicides China News.

It is well known that China is one of the big countries of pesticide production with over 260 technical and 3,000 formulations. Data from the National Bureau of Statistics of China (NBS) show that the total output of pesticides has reached about 2.65 million tonnes in China in 2011.
Besides, China is also one of the biggest pesticide export countries all over the world. For instance, China exported pesticides to over 180 foreign countries and regions, reaching the highest level in history in 2011; the total export volume witnessed a sound growth last year, hitting around 1.41 million tonnes, up 15.65% compared with that in 2010. 

Before 2011, Chinese export volume of pesticide technical has been larger than that of pesticide formulations. As hoped, this situation eventually changed in the previous year. In detail, China's export volume of pesticide formulations in 2011 was about 0.75 million tonnes, up 26.66% year on year, while that of pesticide technical was about 0.66 million tonnes, only up 5.10% year on year.
As formulations exceed technical by export volume, Chinese pesticide industry will play an increasingly important role worldwide. However, some related policies are no good for the development of domestic pesticide formulation industry, which negatively impacts the adjustment of pesticide industrial structure to a certain extent.
Specifically, Chinese export tax rebate rate of pesticide technical is usually 9%, while that of pesticide formulations is only 5%. As a result, this topsy-turvy phenomenon of export tax rebate rate can hardly raise the enthusiasm of pesticide enterprises to extend their industrial chain with higher additional value products–pesticide formulations. 

Under the circumstances, most enterprises prefer to export pesticide technical in consideration of the higher export tax rebate rate. However, these domestic enterprises that produce pesticide technical still act as "outsources" in the chain of international pesticide trade. Meanwhile, the pollution caused by producing pesticide technical in significant quantities is very serious in China, which goes against environmental protection to a great extent.
To better promote the adjustment of China's pesticide industrial structure and thus facilitate its own brand products to enter into international terminal market, domestic enterprises hope that relevant state departments give policy support to domestic pesticide formulation export–increasing the export tax rebate of pesticide formulations and change the topsy-turvy phenomenon between pesticide technical and formulations. 

Although the export tax rebate policy is important, enterprises should not focus on policy support. On the contrary, they ought to constantly strengthen product innovation to firmly occupy international market. Only in this way can China be a more powerful country in global pesticide industry in the future. 

Source: Fungicides China News 1207

Main content of Fungicides China News 1207:
Acquisition promotes Huifeng Agrochemcial's performance in Q1 2012
Anhui Huilong successfully acquires 60% share of HAMP 
Sichuan Guoguang's application for IPO at initial audit stage 
Lier Chemical: H1 performance to exceed forecast  
Epoxiconazole wins approval of more and more rice growers in China 
Bismerthiazol greets a favorable return
Traditional pesticide sales system may be subverted in Hunan
Yancheng Limin's relocation projects start trial production
Weier Chemical to build 200t/a fluazinam production line
SCCESCUT successfully develops methane dithiocyanate 10% SC
Rice diseases and insect pests spreading rapidly
… …

Fungicides China News, a monthly publication issued by CCM International on 10th of every month, provides a wealth of exclusive information and analysis, research and development dynamics of domestic competitors, analysis on import and export of key products, cooperative opportunities with domestic and foreign companies, and market information of foreign patent-expired products.

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