Vietnam Oil and Gas Corporation (PetroVietnam) has committee to stabilising the fertilizer market through year’s end.

In a report to the Prime Minister, PetroVietnam said the maximum annual fertilizer demand is 1.7 million tonnes.

The amount of fertiliser needed for the summer-autumn and winter-spring rice corps as well as other crops nationwide for the first half of the year is about 500,000 tonnes. Demand has been met so far with a reserve of 510,000 tonnes.

Crops for the next six months will require about 950,000 tonnes of fertiliser.

Phu My and Ha Bac Nitrogenous Fertiliser Companies will supply 660,000 tonnes , and PetroVietnam will ask its subsidiaries to import 290,000 tonnes.

Moreover, PetroVietnam will keep the domestic selling price 10-15 percent lower than the import price.

PetroVietnam has a plan to import nitrogenous fertiliser from the Middle East and Russia to meet at least 70 percent of the domestic market’s demand. The 8,000 VND current firm price for fertiliser is 3,500 VND lower than the import price.

Some businesses are re-exporting stocks at aprofit instead of selling them to local farmers. If such practices continue, a fertilizer scarcity in the domestic market would be inevitable.

PetroVietnam suggested the Government raise fertiliser export taxes and asked the Ministry of Industry and Trade to temporarily end fertiliser export quotas to balance prices between the domestic and international market.

The PetroVietnamFertiliser and Chemical Joint-Stock Co. has distributed PetroVietnam’s fertilisers through its 1,237 shops located in the central and southern regions.

(Source: VNA)