Thai fertilizer slowdown

According to the Bangkok Post reported on April 8th, under the pressure of domestic agricultural organizations, Thai Minister of Commerce Pantiva temporarily suspended the decision of the department on increasing fertilizer prices from 10% to 35% from the 7th. .

The Thai government announced on April 7 that it would raise the maximum price of urea by 80 to 107 US dollars per ton, which is higher than the importer’s expectation. The original price is equivalent to the CIF price of US$340. Therefore, the new price level will enable importers to import more than US$420 CIF. This news made the uncertainty of urea prices no longer exist, originally expected to bring a new round of procurement from May to June.

According to the person in charge of the International Trade Department of the Ministry of Commerce, due to the impact of factors such as rising oil prices and international market demand, and China's adjustment of the export tax rate of fertilizers, the price of imported fertilizers has risen. Stopping price adjustments may cause importers to postpone purchases and there will be a shortage of domestic stocks.

According to reports, the current domestic chemical fertilizer inventory has dropped from 1 million tons at the beginning of the year to about 400,000 tons. Some media believe that the temporary decision made by Minister Petitwa was due to political considerations before the election.

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