China to release more than 3 million tons of fertilizer from reserves

China began releasing more than 3 million tonnes of fertilizer from its trade reserves in March for the Northern Hemisphere’s spring planting season, the state planner said on Monday.

More fertilizers will be released from reserves to meet market demand during the main agricultural period, and the government will closely monitor the market situation to ensure stable fertilizer supply and prices, the National Development and Reform Committee said in a statement.

Meanwhile, Beijing has struggled to supply enough fertilizer to its 300 million farmers to keep prices in check, as the country vows to bolster food security amid intensifying supply concerns amid Ukraine’s war.

The government since September last year had been planning to release fertilizer stockpiles in batches to help tame runaway prices.

Zhengzhou urea futures hit a record 3,342 yuan ($525.46) a tonne in mid-October, before falling to around 2,200 yuan as Beijing launched a market investigation and imposed additional inspection requirements for exports. of fertilizer products.

China’s fertilizer production rose 0.8% to 54.46 million tonnes in 2021, while exports fell 42% from a year earlier.

Urea prices last week rose to 2,782 yuan per tonne after a rise in global energy prices, including natural gas and coal, which are the raw material for fertilizer production.

Russian fertilizer billionaire Andrei Melnichenko warned on Monday that a global food crisis is looming unless the war in Ukraine is stopped.

According to him, fertilizer prices are rising so rapidly that many farmers can no longer afford nutrients for the soil.