Environmental protection inspection to keep stringent in H2 2013

The 2013 (5th session) Development Symposium of China's Glyphosate Industry (hereinafter referred to as the Symposium) was successfully held in Jinan City, Shangdong Province during 17-18 July, 2013. During the Symposium, it was revealed that the environmental protection inspection against glyphosate/PMIDA manufacturers in China will remain stringent in H2 2013. Therefore, the supply of glyphosate will be tight, which will contribute towards maintaining the high prices of glyphosate products in H2 2013, according to Glyphsoate China Monthly Report issued by CCM in August.

Wang Xiaomi, the director of Pollution Prevention and Control, China's Ministry of Environmental Protection, revealed that the Inspection (China's Ministry of Environmental Protection released document No.: [2013] 57—Notice Regarding the Environmental Protection Inspection against Glyphosate (PMIDA) Manufacturers (hereinafter referred to as the Inspection) on 21 May, 2013) will remain stringent in H2 2013. Wang highlighted the 2 aspects for this decision.

Firstly, the stringent inspection will help to create a more rational competitive environment for the glyphosate/PMIDA manufacturers in China. Wang stated that glyphosate/PMIDA manufacturers which fail to pass the Inspection requirements will have their ability to survive gradually eradicated. Glyphosate/PMIDA manufacturers that succeed in passing the Inspection requirements and obtain the qualification will significantly benefit by acquiring the market share left by small and medium glyphosate/PMIDA manufacturers that have failed the Inspection.

Lower or a lack of investment into waste treatment has enabled small and medium manufacturers to compete with mainstream manufacturers to the detriment of the environment. At present, the glyphosate products prices of many small and medium glyphosate/PMIDA manufacturers are more competitive than the mainstream manufacturers' prices. One of the most important reasons for this is that the production cost for small and medium manufacturers is lower. This is due to their lower, or lack of investment into the treatment of glyphosate waste. Wang stated, "It means that the waste treatment capacity of glyphosate industry in China will be greatly enhanced when there are many glyphosate/PMIDA manufacturers succeeding in passing the requirement of the Inspection in the glyphosate industry, and the environmental pollution incidents caused by glyphosate/PMIDA manufacturers will be fewer and fewer".

Secondly, the positive effects of stringent environmental inspection against the glyphosate industry will set an example for other pesticides sectors in China.

"Glyphosate is the first pesticide to undertake environmental protection inspections in China, and at present the glyphosate industry is the eleventh industry to undertake environment protection inspections.  China has implemented environmental protection inspections in the citric acid industry, rare earth industry and other industries", said Wang. "We hope that the stringent environmental protection inspections can solve problems in the glyphosate industry such as overcapacity, backward waste treatment technology, etc., which will set a good example for other pesticides' environmental protection inspection in the future".

At present, some pesticides suffer from overcapacity or have serious environmental pollution problems in China. However, the next pesticide to undergo an environmental protection inspection is uncertain. Zhuang, a director of a top fungicide manufacturer in China, said that the fungicide——carbendazim will be the next pesticide for environmental protection inspection in China. The initiation time will depend on the final result of the environmental protection inspection on the glyphosate industry.

Glyphosate/PMIDA manufacturers have differing opinions regarding the stringent environmental protection inspection on glyphosate/PMIDA manufacturers. Some manufacturers support the Inspection.

Liu, a manager of CAC Group Co. Ltd, believes that the Inspection is very necessary for the glyphosate industry because it can eliminate rogue small and medium glyphosate/PMIDA manufacturers in China. Guan, a manager of Jiangsu Kuaida Agrochemical Co. Ltd, said that his company supports the Inspection because the Inspection's advantages outweigh the disadvantages for glyphosate industry. Guan also revealed that his company would actively apply for the Inspection.

However, other manufacturers were reluctant to apply for the environmental protection inspection.

Guo, a manager of Redsun Group Co. Ltd stated that his company must apply for the environmental protection inspection if his company wants to keep glyphosate business. Jiang, a manager of Chongqing Fenghua Technology Co. Ltd said that his company has no choice but to apply for the environmental protection inspection, even though glyphosate is not his company's main business.

The other issue of concern for glyphosate/PMIDA manufacturers is whether there will be many new policies and/or regulations pertaining to the glyphosate/PMIDA industry.

New policies and regulations about glyphosate/PMIDA industry will be released. Wang stated that although a glyphosate/PMIDA manufacturer may voluntarily apply for environmental protection inspection, the manufacturer will be required to provide the certification for passing the Inspection when seeking administrative licensing and/or approval. 

Also, China's Ministry of Environmental Protection plans to formulate policies and/or regulations against glyphosate industry with other Chinese governmental departments, including China's Ministry of Commerce, China General Administration of Customs, the Institute for the Control of Agrochemicals, Ministry of Agriculture (ICAMA), China Crop Protection Industry Association (CCPIA), and other departments.

Li Xiaoni, vice president of the China Chamber of Commerce of Metals Minerals & Chemicals Importers & Exporters, stated that in July 2013 she proposed to the China's Ministry of Commerce that glyphosate products should only be granted an export license upon the completion of an Inspection. Li also revealed that this proposal needs the cooperation of the China General Administration of Customs.

Li Zhengxian, secretary-general of the CCPIA, said that the CCPIA would propose to the ICAMA that the ICAMA require the certification for passing the environmental protection inspection when a company applies for the registration of glyphosate products. Li also revealed that the CCPIA has many proposals regarding the glyphosate industry, including licensing and approval of expanding or constructing new glyphosate capacity, and tax incentive measures.

Overall, there will be 4 categories of policies and regulations which may be formulated by the relevant governmental departments following the completion of the Inspection at the end of 2015. The 4 categories are as follows:

1). Administrative licensing and approval policies and regulations, including industry access, product registration, production approval and mandatory production plans.

2). Trade policies and regulations, including export quotas and export licensing.

3). Tax policies and regulations, including the comprehensive utilization of resources income tax, value added tax concessions, export tariffs, etc.

4). The elimination of policies or regulations that encourage backward production technologies.

If the environmental protection inspection remains stringent in H2 2013, the supply of glyphosate will be tight. This is good news for glyphosate/PMIDA manufacturers that have the ability to complete waste treatment. The tight supply will contribute to   perpetuating   the high prices of glyphosate products in H2 2013.

Table of Contents of Glyphsoate China Monthly Report 1308:

Sichuan Shuncheng accomplishes trial run of 90,000t/a PMIDA production line

The revenue of Monsanto in the past nine months of fiscal year 2013 increases by 11%

Brief overview of 2013 Development Symposium of China’s Glyphosate Industry

Environmental protection inspection to keep stringent in H2 2013

94% glyphosate products pass national quality check in Q2 2013

Chlor-alkali co-production to lead the treatment technology of glyphosate waste water

Thirteen glyphosate registrations in July 2013

Glyphosate technical price sees a significant increase in Aug. 2013

Export volume of glyphosate technical decreases by 11.45% in June 2013

Review of Chinese glyphosate export in H1 2013

Glyphosate China Monthly Report, a monthly publication issued by CCM on 20^th, will keep track of latest dynamics, hotspots and competitiveness analysis, and forecasts on market trends of China’s glyphosate industry.

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China needs to attach importance to extra small-package pesticide adjuvants regulation

Pesticide adjuvants in extra small packages now are being increasingly used in pesticide sales in China as pesticide formulations study is increasingly deepened in recent years. The problem of pesticide adjuvants in extra small packages needs to get sufficient attention on further strengthening the supervision and regulation establishment. On one hand, China lacks of regulations and supervision on the use of  pesticide adjuvants in extra small packages at present. On the other hand, some manufacturers add illegal ingredients secretly under the name of pesticide adjuvants, which has harmed the interests of many farmers. For example, a case happened in Zhengzhou City of Henan Province that pesticide adjuvants made the production of corn and peanut of 494 ha. decreased.

As a matter of fact, the Ministry of Agriculture of People's Public of China (MOA) has noticed the bright prospect and current problems of adjuvants in extra small packages in pesticide application. The MOA has been studying relevant standards for pesticide adjuvants in conjunction with some large pesticide manufacturers in China. In addition, a thematic workshop of pesticide environmental adjuvants was held in April 2012 during the Third Environment-friendly Pesticide Formulation Processing Technology and Production Equipment Symposium hosted by the Chinese Crop Protection Industry Association (CCPIA) in Kunshan City, Jiangsu Province.
 
Some insiders predicted that the regulations for pesticide adjuvants in extra small packages would be issued within two years.

Herbicides China News is a monthly publication released by CCM. It offers timely update and close follow up of China’s various kind of herbicides market dynamics, analyze the market data and trends. Major columns include market dynamic, company dynamic, raw material supply, price update, import & export analysis, consumption trend & competitiveness.

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China's first Agricultural Insurance Regulations issued

Investment in agricultural industry has been hot in recent years, and modern agriculture is also considered to be a potential investment field. Based on the current situation of China's modern agricultural industry, it's suggested that more capital and highly advanced management are needed for building some famous brands and increasing the industrial concentration.

On 12 Nov., 2012, China's first law for agricultural insurance, Agricultural Insurance Regulations (Regulations), was formally issued after the soliciting of public opinions for half a year. Besides, the Regulations shall be effective as of March 1, 2013, according to an announcement published by the Legislative Affairs Office of the State Council (LAOSC).

Agricultural insurances can be divided into planting industry insurance, breeding insurance and forest insurance basing on agriculture category. Among which, planting industry insurance refers to the business of providing insurance to grain crops and industrial crops. That is to say, rice, wheat, soybean, sorghum, corn, cotton, tobacco, tea, mulberry, sugarcane, herbs, vegetables, etc. are underwritten by the insurance.

The Regulations mainly aims to regulate agricultural insurance activities, protect the lawful rights and interests of the parties to the contract for agricultural insurance, enhance the capability to withstand risks during agricultural production and help agricultural insurance develop well.

Crop Protection China News is a monthly publication released by CCM. It offers timely update and close follow-up of China’s various kind of crop market dynamics, analyze the market data and trends. And the major columns include companies' current dynamics and market situation, a close watch of government policies and regional dynamics. If you want to know more about Crop Protection China News, you can contact us.

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Regulations on Pesticide Management Will Make Great Impact in China

Guangzhou China, August 2, 2011 – New regulations on pesticide management are to be nailed down soon and they will largely impact current pesticide market, according to CCM’s latest issue of Crop Protection China News.

On July 21, 2011, the Legislative Affairs Office of China State Council released a draft for seeking opinions on Regulations on Pesticide Management, with the purpose to further regulate domestic pesticide industry and ensure domestic food security.

Two big changes in the draft include (1) Cancel the temporary registration of pesticides and further standardize the processes of pesticide registration; (2) Set up license system of pesticide business and the validity period of pesticide business license is three years.

If the government releases the above two regulations, the cost of pesticide registration and pesticide dealing will be largely increased. That means small pesticide players in China may face great challenges in future company operation which would provide good chances for the integration of domestic pesticide industry.

The two big changes in the draft will largely impact current pesticide market in the future. Although the implementation may encounter a lot of difficulties, combining with implementation with China Pesticide Industry Policy, domestic pesticide industry will enter a new era in the future.

More news about the industrial trend, company dynamics, market price, and future forecast will be shared in Crop Protection China News.

You may find more in the latest issue of Crop Protection China News:

-On July 21, 2011, the Legislative Affairs Office of China State Council releases a draft for seeking opinions on Regulations on Pesticide Management.-On July 26, 2011 China releases 12th Five-Year Plan for Pesticide Industry which has stimulated the boost of pesticide stocks against market trend.-China newly approved 861 pesticide production licenses in H1 2011.-China cotton price has experienced continuous descent for four months since March 2011, nearly hitting the minimum purchase price set by the government.-Overcapacity, raw material price hike, RMB appreciation continue bothered domestic glyphosate players in H1 2011.-Export of domestic imidacloprid technical witnessed huge increase in the first five months of 2011 compared with the same period of 2010.-Anhui Huilong intends to purchase 51% equities of Huangshan Xinan which indicates its expansion road unveils after its IPO.-NATESC predicts pests and diseases of mid and late rice will be more serious than that of 2010.-Ministry of Agriculture aims to promote the professional control on pests in the whole country.

About CCM

CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer.
Please visit http://www.cnchemicals.com for more information or contact econtact@cnchemicals.com

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New Regulations on Pesticide Management to be Nailed down Soon

August 2, 2011, CCM – On July 21, 2011, the Legislative Affairs Office of China State Council released a draft for seeking opinions on Regulations on Pesticide Management, with the purpose to further regulate domestic pesticide industry and ensure domestic food security.
According to CCM’s latest issue of Crop Protection China News, regulations on Pesticide Management have experienced several revisions after it was issued and implemented on May 8, 1997. However, the last revised version of Regulations on Pesticide Management on July 27, 2002 no longer keeps pace with the great development of domestic pesticide industry in recent years. Moreover, food security accidents triggered by irrational use of pesticides which frequently happened in recent years have alerted Chinese Government the emergency to fix the deficiencies of pesticide management.

Hence, Chinese Government decides to amend this policy again by carrying out a more intensive one over pesticide management. The draft released for seeking opinions this time includes eight chapters and 84 articles, covering registration, production, sales, etc. of domestic pesticide industry.

Compared with the current pesticide management policy, the draft is formed by adding one chapter and 35 articles with more intense regulations into the current one.

According to the draft of Regulations on Pesticide Management, two of the items may deeply impact domestic pesticide industry.

1. Cancel the temporary registration of pesticides and further standardize the processes of pesticide registration, mainly emphasizing on pesticide safety, the effectiveness evaluation of pesticides, higher investigation requirements, etc.

2. Set up license system of pesticide business and the validity period of pesticide business license is three years. Cancel the restriction that only some pesticide operators, such as pesticide supply and marketing cooperatives, agricultural technology extension station, etc., own the qualification to apply for pesticide business licenses, stating that individual business dealers could also apply for pesticide business if they meet the requirement of pesticide operation standards according to the regulations of local government.

Between the two large modifications, cancelling the temporary registration of pesticides is considered to be the most critical one. China has started the temporary registration system of pesticides since 2001. Owing to its much lower fees and shorter registration processes on getting the permission of pesticide production, it has provided great benefits to either most pesticide players in China or the development of domestic pesticide industry.

However, fast development of domestic pesticide industry has offered a positive environment for pesticide business, thus more and more pesticide players sprang up in China in the last decade which has somewhat given rise to a chaotic market in domestic pesticide industry.

To better manage domestic pesticide market and cut down the numbers of pesticide players, cancelling the temporary registration of pesticides is considered to be an irresistible trend. Actually Chinese government has also considered setting up a special registration system which is popular in international pesticide industry in response to emergency situation.

As for setting up license system of pesticide business, it is another trend of domestic pesticide management in the future. Owing to the great negative effects caused by food security events in recent years, such as poison cowpea in Hainan Province, two main pesticide consumption provinces in China are carrying out or to carry out license system of pesticide business, namely Hainan Province and Shandong Province.

The implementation of license system is believed to be nationally promoted after the revision and release of Regulations on Pesticide Management in the near future. However, there may be some kinds of regional disparities according to the real situation in local areas.

Apparently, it may be difficult to understand the government's decision on permitting individual dealers to apply for pesticide business while Hainan is carrying out the Implementation Measures of Hainan Province Pesticide Wholesale and Retail Business License Management Regulation (Trial), saying it is going to limit the number of individual pesticide dealers to 205 in the whole island from more than 4000.

According to the draft, although it intends to permit individual dealers to apply for pesticide business, it still sets a higher threshold but not clearly stated in the draft. The requirement may be released in the coming implementary provisions and there will be some differences among provinces.

Outlook
Actually, the amendment of Regulations on Pesticide Management had been launched last year and it was expected to be released by the end of 2010. However, owing to a wide divergence of opinion among government departments, pesticide players, etc., the issue of the policy has to be pushed off and revised over and over again.

The two big changes in the draft will largely impact current pesticide market in the future. Although the implementation may encounter a lot of difficulties, combining with implementation with China Pesticide Industry Policy, domestic pesticide industry will enter a new era in the future.

Source: Crop Protection China News 1114

http://www.cnchemicals.com/Newsletter/NewsletterDetail_16.html

Content of Crop Protection China News 1114:

New Regulations on Pesticide Management to be nailed down soon
New policy boosts pesticide stocks against market trend
China newly issues 861 pesticide production licenses in H1 2011
China cotton price to hit minimum purchase one
Downturn of domestic glyphosate continues in H1 2011
Domestic imidacloprid export up in H1 2011
Anhui Huilong's expansion kicks off
Rice pests and diseases to be serious in H2 2011
China promotes the professional control on pests

Crop Protection China News, a semimonthly publication issued by CCM International on 15th and 30th(31th) of every month, aims to gain a deep insight into Chinese market, supply the latest market data and strategy support, analyze the newest legislation and policy and grasp the future market trend.

Please visit http://www.cnchemicals.com for more information or contact us at econtact@cnchemicals.com

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