Proposing to tax exported fertilizer

Vu Duy Hai, Director-general of Vinacam Joint Stock Company said that it is undeniable that the domestic fertilizer is increasing according to the upward trend of global one, especially for those that are yet to be produced in the country and totally imported from abroad.

However, Hai told that the slow and moderate response to halt or impose an exported tax to Urea and DAP have contributed to the surge of fertilizer price.

He stressed that it is necessary to adopt drastic measures to prevent and limit fertilizer exports this time. Besides, there must be supervision to transparentize the data of manufactured products, the number of exported goods (compared with the domestic selling price of the same period), the selling quantity, and the amount of inventory of each time to realize the actual reason contributing the increasing domestic selling prices of fertilizers from DAP and Urea producers at present.

Nguyen Dang Nghia, Director of the Center for Research and Consultancy on Tropical Agriculture, agreed that the Ministry of Agriculture and Rural Development and the Ministry of Industry and Trade should soon agree to propose the Government to issue policies and increase fertilizer export tax to put more priority on the domestic market as much as possible.

As mentioned by him, it must be forthwith feasible and urgent solutions to help farmers continue to produce and maintain income like previous crops.

Urgent solutions to help farmers continue production in the last six months of 2021 and the coming years is that MARD and the MoIT need to discuss and agree on a plan to direct and monitor changes in the fertilizer market and have solutions to control and stabilize the market to suit the difficulties and pressing concerns of farmers today.

Demanding producers to maximize domestic fertilizer capacity namely domestic Urea, phosphate, and DAP, domestic supply of NPK with the most reasonable selling price. Strengthening the production of high-quality organic fertilizers, mineral organic fertilizers, liquid organic fertilizers, specialized foliar fertilizers for plants to support and reduce the pressure of increasing chemical fertilizer prices during coming the growing season.

To avoid the situation of price fever, hoarding, and speculating on raw materials, businesses must publicize and transparentize information about the source and quantity of goods available so that agencies and people can acknowledge and feel secure in production. As domestic enterprises self-control the production, with guaranteed quality, competitive prices, and a sense of common interest, they will contribute to ensuring supply and restraining the price increase of fertilizers in Vietnam.

Association of Fertilizer of Vietnam needs to carefully consider the subjective and objective reasons for the fertilizer prices increase, thereby giving suggestions to businesses to jointly cool down domestic fertilizer prices in the spirit of sharing legitimate interests between farmers and businesses.

Besides, Nghia shared that farmers must enhance their consciousness of the rational use of fertilizers through existing programs such as the program: three increases, three decreases, one must five reductions, smart farming, balanced and reasonable fertilization to save fertilizer use and reduce input costs in agricultural production.

In a meeting with businesses, experts proposed to halt the export of fertilizer products, Vice Chairman and General Secretary Phung Ha of Vietnam Association of Fertilizer affirmed that there is no law banning fertilizer export. The export of fertilizer is completely under the market mechanism, if domestic consumption is difficult and the efficiency is poor, businesses will choose export solutions and vice versa.

According to Ha, to limit fertilizer exports and stabilize the domestic market, the Government should apply policies such as increasing taxes and export fees, but the imposition of this tax must also be considered based on multilateral and bilateral trade relations, WTO  that Vietnam signed so as not to violate commitments on tariffs.