approved this month, is expected to benefit both farmers and businesses.
Speaking at a conference on Oct. 12 outlining fertiliser production
development for the next 10 years, the Deputy Minister of Industry and
Trade (MIT), Nguyen Hai Nam , said fertiliser is a strategic product
that helps ensure national food security.
Although
the Government has cooperated closely with the Vietnam Fertiliser
Association in planning fertiliser production and quality, farmers are
still faced with shortages and "price fever" when demand soars before
planting, said Phung Ha, head of MIT's Department of Chemicals.
Secretary of the association Nguyen Hac Thuy said there has been no
clear development strategy for the fertiliser industry and that demand
is unpredictable.
According to the association,
farmers lose 1.2 trillion VND (60 million USD) each year due to the
low-quality and fake fertiliser products.
This
year, the nation's demand for fertiliser is forecast to reach 9.1
million tonnes, but domestic production can satisfy only 60 percent of
this.
A report from An Giang University's Economics
Faculty claims farmers have to buy fertilisers at prices 30-40 percent
higher than those offered by producers. They often have to buy
low-quality products from small firms because State authorities can only
supervise large fertiliser companies.
Ha said one
of the reasons fertiliser prices are often unstable was that
distribution systems develop spontaneously. Products come to farmers
through many middlemen.
Ha said when planning is
approved, fertiliser distribution systems will develop based on the
establishment of agricultural economic areas, demand in each area, the
characteristics of local economic activities and farmers' purchasing
practices.
Under the plan, from now to 2015,
fertiliser distribution centres will be set up in Lao Cai, Phu Tho, Bac
Giang, Hai Duong, Ninh Binh, Nghe An, Da Nang, Binh Dinh, Dac Lac, Lam
Dong, Long An, An Giang, Can Tho and Kien Giang.
Ha
said to make planning more efficient, State agencies should change
their ways of management. He added that producers must be granted
certificates setting out conditions for business required by the
Ministry of Industry and Trade. Otherwise they should not be allowed to
trade.
He said this would help weed out small-scale companies using old technology and those producing low-quality fertiliser./.
