Fertilizer prices are causing farmers to 'wither'

The prices set a new peak

According to a fertilizer agency owner in Ngoc Hoi district (Kon Tum), currently, the prices of fertilizers such as urea, potassium, and NPK have increased sharply. In particular, the price of urea at the moment ranges from VND 12,000 to 12,600/kg while in early May it was only VND 10,000/kg, which is an increase of over VND 2 million/ton. Potassium price is at VND 9,800 - 10,200/kg, NPK 20 - 20 - 15 is about VND 14,000/kg; NPK 17 - 7 - 17 is about VND 12,000-12,400/kg; NPK 16/8/16 is about VND 12,000 - 12,300/kg.

"Last year, the price of NPK fertilizers was only VND 350,000 - 400,000/bag, but now it has increased to VND 450,000/bag. Fertilizer price’s sharp increase has also affected sales. This year, the amount of fertilizer sold to the market has decreased by over 20% compared to the previous year”, said Mrs. Nguyen Thi Thuy, a fertilizer agency owner in Xuan Truong commune (Da Lat city, Lam Dong province).

According to Mrs. Nguyen Thi Thuy, in the past, on every rainy season, people growing coffee, vegetables and flowers in Da Lat tended to buying fertilizer in large quantities. However, this year, due to the impact of the Covid-19 epidemic, the price of agricultural products decreased while the price of fertilizer increased, which made many families not have enough capital to reinvest.

“Bite the bullet for investment loan”

Mr. Le Minh Dong (living in Cu Bao commune, Buon Ho town, Dak Lak) shared that his family has 3 hectares of fields growing coffee and durian, and every year the family spends about VND 150 million buying fertilizer to invest in crops. However, at present, the increased price of fertilizer has doubled the investment cost for that 3 ha of field.

“The epidemic causes the price of agricultural products to stay low, and all investment costs, especially fertilizer, make farmers invest without profit. In order to have money to buy fertilizer, my family has to go to the agency to sign a debt", said Mr. Dong.

Mr. Nguyen Van Dung (living in Buon Ho town) is in a similar situation. “It's just the beginning of the rainy season, but my family has spent the same annual amount of money to buy fertilizer. The price is indeed high, but in fear of losing the next crop, my family still has to bite the bullet to borrow for investment", said Mr. Dung.

According to a leader of the Sub-Department of Cultivation and Plant Protection of Dak Lak province, the increase in fertilizer price was mainly due to the fact that the Covid-19 epidemic increased transportation costs. Because of the high input of raw materials, the fertilizer production cost increased, leading to an increase in prices.

Tight control to prevent speculation and hoarding

According to the Sub-Department of Cultivation and Plant Protection of Lam Dong province, the annual demand for fertilizer in the province is about 1.42 million tons, including 0.94 million tons of organic fertilizer (0.37 million tons of commercial organic fertilizer, accounting for 39.4% of total organic fertilizer; 0.57 million tons of self-composted manure by farmers, accounting for 60.6% of total organic fertilizers) and 0.48 million tons of inorganic fertilizers.

Also according to Mr. Ha Ngoc Chien, Director of the Sub-Department of Cultivation and Plant Protection of Lam Dong Province, when the price of materials increased, the Sub-department had coordinated with fertilizer management units to grasp the situation to avoid agencies and business establishments speculating, storing and hoarding goods to raise prices.

“Currently, the Sub-department maintains information promotion and propaganda for fertilizer production and trading units to well comply with State regulations: Do not conduct speculation, hoarding goods and waiting for the price increase. At the same time, we also strengthen inspection, survey for goods quality control and strictly handle violations," said Mr. Chien.