Fertiliser Prices Keep Soaring in Vietnam

3:26:30 PM | 7/8/2005

Fertiliser Prices Keep Soaring in Vietnam

 

Domestic fertiliser prices will continue to increase in the first half of this year due to high oil and coal prices on the global market, according to the Vietnam Fertiliser Association’s Chairman Nguyen Hac Thuy.

 

Oil prices have increased again to US$48 per barrel after declining from the peak of US$55 per barrel, coal prices have surged from US$100 per tonne to US$190, he said.

 

The price of imported urea fertiliser increased by US$15 per tonne to US$270 in early this year over prices at the end of last year. The wholesale price of urea fertiliser remains VND4.7 million (US$300) per tonne and the retail price is around VND5 million (US$317).

 

The official expressed hope that the government will approve cutting the value added tax for fertiliser to zero early this year to help curb the ever-rising price of domestic fertilisers.

 

The association will set up a division to control the price of urea fertiliser, the main fertiliser used domestically, he said. Participants in the division are urea importers and producers. They will provide production and trade information for the association’s forecast on the fluctuation of prices. 

Thuy expected that this year, Vietnam will produce 4.6 million tonnes of fertiliser and will import 2.5 million tonnes. He also said the country has 300,000 tonnes of fertiliser in stock. Local importers bought around 200 tonnes of fertilisers including 100 tonnes of urea, which the country buys most.

Thanh Nien News Online, VNS