According to the General
Administration of Customs, China Europe , the situation may continue in the next few months
this year.
As for pesticide, the export
situation is a little better. 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 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, China
On 1 Aug., 2008, China
In late 2008, China
In 2009, China
On 15 July, 2010, China abolished export rebate again for some
pesticides, including the most important pesticide in 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.
Second, China
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 China China
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 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.
In 2011, China China
Source: Crop Protection China
Content
of Crop Protection China News 1218：
Should 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 China
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 China
About
CCM
CCM is dedicated to
market research in China
Please visit http://www.cnchemicals.com for more
information
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