On March 8, the Heilongjiang Provincial Price Bureau announced new measures to regulate the distribution of fertilizers and other essential agricultural inputs across the province this year. The policy builds upon existing price controls by introducing stricter rules on how chemical fertilizers are distributed, ensuring that farmers are protected from excessive markups and market volatility.
This year, the provincial price department continues to enforce strict limits on the markup rates for agricultural products such as fertilizers, pesticides, and plastic mulch. Wholesale enterprises are now required to keep their profit margins at no more than 3% based on actual purchase prices, while retailers can only add up to 1% to the cost. Additionally, transportation expenses and incidental costs incurred during the supply chain must be added to the base purchase price, along with actual bank loan interest charges.
To prevent price hikes from negatively affecting farmers, the Price Bureau has mandated that all chemical fertilizers produced within the province must be priced based on their ex-factory cost. It is strictly prohibited to conduct three levels of wholesale distribution, and secondary trading within the same city or county is also not allowed. For fertilizers purchased from out-of-province manufacturers, they must be priced based on the ex-factory cost in the province, with no more than one level of wholesale allowed. Similarly, fertilizers bought from provincial distribution centers outside the province can only be sold once through a wholesale channel.
Wholesale and retail businesses are permitted to add only one layer of markup, with a maximum difference rate of 3%. The Price Bureau has also instructed local price authorities to maintain a registration and filing system for fertilizer prices in their respective regions. Provincial agricultural distribution centers will publicly disclose detailed information about each product, including variety, origin, content, quality, and pricing details.
During critical periods like the spring plowing season or top-dressing time, if fertilizer prices experience significant fluctuations, local governments must approve any price controls. In such cases, the price authority may impose a maximum price cap on fertilizers in specific areas. Furthermore, the price inspection department will increase its oversight of agricultural input pricing, conducting thorough checks and imposing strict penalties for violations such as non-compliance with regulations, price manipulation, unclear pricing, hoarding, and fraudulent practices.
These measures aim to ensure stable and fair access to essential agricultural supplies, safeguarding both farmers and the broader rural economy.
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