Vietnam Likely to Halt Fertilizer Export until Next February
Vietnamese Ministry of Industry and Trade has decided to ban the export of fertilizers in response to a recent proposal of the Fertilizer Association of Vietnam (FAV).
The export suspension, that is aimed to curb possible fertilizer shortages in the domestic market during the next winter-spring crop, will likely last until next Feb when crop ends.
Fertilizer prices have been soaring ahead the crop’s beginning in cities and provinces of Vietnam though local fertilizer manufacturers have promised that they are capable of meeting demand.
Prices of imported fertilizer soared between 30% and 40%, while domestic fertilizer prices increased 10%-15% from several months earlier, said local traders.
Chinese DAP fertilizer is selling for VND720,000-VND740,000 per bag while urea fertilizer prices are VND520,000-VND540,000 per bag.
The appreciation of U.S. dollar and increase of fertilizer prices in the world market are blamed for the domestic price hikes, traders said.
Nguyen Hac Thuy, vice chairman of FAV, forecast that domestic fertilizer prices will keep rising in the coming months amid the world growing prices as a result of high demand.
Cities and provinces in Vietnam are forecast to need a total 3.6 million tons of fertilizers for the upcoming winter crop, but domestic firms are capable of supplying only 2.5 million tons, leaving the remaining volume are imports. (Investment, Vietnam Agriculture)
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