Although it was the heart of the people, when the National Development and Reform Commission asked the industry for reform of the fertilizer industry policy to seek advice from the industry, it still caused a strong response.
According to the new industrial policy of the National Development and Reform Commission, the country’s management of the chemical fertilizer industry will undergo fundamental changes and will be transformed into a completely market-oriented management. From the perspective of the overall development of the fertilizer industry, this change is undoubtedly positive. It will further strengthen the market awareness of chemical fertilizer companies, speed up the process of China's chemical fertilizer industry to survive and eliminate the inferior, and enhance the competitiveness of the entire industry and its ability to resist risks. However, we must also realize that since the government has established a psychological orientation with the fertilizer companies for a long time, once this reform is implemented, it will break this psychological trend and both parties must seek a new psychological orientation. , and thus take a new response.
The new fertilizer industry policy will first test the government's ability to regulate the market. Over the years, the National Development and Reform Commission, as the competent authority, has spent a lot of time in managing the fertilizer industry. Through various policies, they seek a balance between raw material supply companies, transportation companies and fertilizer production companies, production companies and sales companies, and end-user farmers. They also limit prices and subsidize them. Put it aside. However, from a management point of view, this model is relatively easy because the government departments can coordinate and manage them through some mandatory policies and administrative measures so that the development of the entire fertilizer industry is under the control of the government. However, after the implementation of the new policy, especially at the beginning of the transition of the management system, there will be many problems that will challenge the government's management capabilities. If the original preferential treatment is cancelled, the competitive advantage of small and medium-sized chemical fertilizer enterprises, which account for half of the production capacity of the fertilizer industry, will disappear and many companies will face the risk of failure. Once there is a large area of ​​business closure, how to ensure the domestic fertilizer production? How to ensure market supply? For another example, after the market is released, the price of domestic fertilizer market will rise sharply. Under such circumstances, once the price of fertilizers in the international market falls, a large amount of foreign fertilizers will flow into the domestic market. Is the government pulling domestic fertilizer? From the perspective of the NDRC's plan, the main support for liberalizing fertilizer prices is to increase the direct subsidies to farmers. However, how can we ensure that such subsidies are completely in the hands of farmers is also a great test of the government's ability to govern. Now, in some areas, even life-saving money such as poverty relief and disaster relief funds are sometimes used for other purposes. Can the fertilizer subsidy be successfully reached by farmers? If subsidy payments are misappropriated and farmers do not have the money to purchase chemical fertilizers after prices are released, the impact on food production may not be a single point.
The implementation of new industrial policies is a new challenge to the production enterprises. For many years, chemical fertilizer production companies have become accustomed to first calling for policy support if they cannot solve the market problem. If the new management system is implemented, the fertilizer production enterprises must solve the problems encountered in the market themselves, coordinate the relationship with the raw material supply companies, and solve the product transportation and price problems by themselves. This is not a simple matter for all fertilizer manufacturers. In addition, although there is no restriction on the product price limit, but fertilizer manufacturers can not place all hope on price increases. Do not say that the purchasing power of farmers has not been completely changed. If the price of products rises by more than a certain extent, it will be inevitable that they face the strong competition of foreign products.
The marketization of the fertilizer industry is an inevitable trend. Now the reform of the national industrial policy is in full swing. Faced with the challenges brought about by the implementation of the new policy, the government is also a good company and it must use new ways of thinking to find new ways to solve the problem.
According to the new industrial policy of the National Development and Reform Commission, the country’s management of the chemical fertilizer industry will undergo fundamental changes and will be transformed into a completely market-oriented management. From the perspective of the overall development of the fertilizer industry, this change is undoubtedly positive. It will further strengthen the market awareness of chemical fertilizer companies, speed up the process of China's chemical fertilizer industry to survive and eliminate the inferior, and enhance the competitiveness of the entire industry and its ability to resist risks. However, we must also realize that since the government has established a psychological orientation with the fertilizer companies for a long time, once this reform is implemented, it will break this psychological trend and both parties must seek a new psychological orientation. , and thus take a new response.
The new fertilizer industry policy will first test the government's ability to regulate the market. Over the years, the National Development and Reform Commission, as the competent authority, has spent a lot of time in managing the fertilizer industry. Through various policies, they seek a balance between raw material supply companies, transportation companies and fertilizer production companies, production companies and sales companies, and end-user farmers. They also limit prices and subsidize them. Put it aside. However, from a management point of view, this model is relatively easy because the government departments can coordinate and manage them through some mandatory policies and administrative measures so that the development of the entire fertilizer industry is under the control of the government. However, after the implementation of the new policy, especially at the beginning of the transition of the management system, there will be many problems that will challenge the government's management capabilities. If the original preferential treatment is cancelled, the competitive advantage of small and medium-sized chemical fertilizer enterprises, which account for half of the production capacity of the fertilizer industry, will disappear and many companies will face the risk of failure. Once there is a large area of ​​business closure, how to ensure the domestic fertilizer production? How to ensure market supply? For another example, after the market is released, the price of domestic fertilizer market will rise sharply. Under such circumstances, once the price of fertilizers in the international market falls, a large amount of foreign fertilizers will flow into the domestic market. Is the government pulling domestic fertilizer? From the perspective of the NDRC's plan, the main support for liberalizing fertilizer prices is to increase the direct subsidies to farmers. However, how can we ensure that such subsidies are completely in the hands of farmers is also a great test of the government's ability to govern. Now, in some areas, even life-saving money such as poverty relief and disaster relief funds are sometimes used for other purposes. Can the fertilizer subsidy be successfully reached by farmers? If subsidy payments are misappropriated and farmers do not have the money to purchase chemical fertilizers after prices are released, the impact on food production may not be a single point.
The implementation of new industrial policies is a new challenge to the production enterprises. For many years, chemical fertilizer production companies have become accustomed to first calling for policy support if they cannot solve the market problem. If the new management system is implemented, the fertilizer production enterprises must solve the problems encountered in the market themselves, coordinate the relationship with the raw material supply companies, and solve the product transportation and price problems by themselves. This is not a simple matter for all fertilizer manufacturers. In addition, although there is no restriction on the product price limit, but fertilizer manufacturers can not place all hope on price increases. Do not say that the purchasing power of farmers has not been completely changed. If the price of products rises by more than a certain extent, it will be inevitable that they face the strong competition of foreign products.
The marketization of the fertilizer industry is an inevitable trend. Now the reform of the national industrial policy is in full swing. Faced with the challenges brought about by the implementation of the new policy, the government is also a good company and it must use new ways of thinking to find new ways to solve the problem.
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