Domestic companies are laying blame at each other for the serious shortage of fertilizer in Vietnam, while farmers spending on the products has skyrocketed due to high prices.
Local fertilizer prices have gone through the roof and are set to continue their upward trend, pushed by an extreme shortage caused by rising global prices and stockpile mismanagement.
Since early this month, fertilizer prices have surged by VND1,000 (6 US cents) per kg, while the price of urea fertilizers imported from China has spiked to VND6,000 (37 US cents) per kg.
Notably, DAP fertilizer has seen its price rocket by VND1,800 (11 US cents) to VND7,000 (43 US cents) per kg.
Surging global prices fueled the domestic price increase, according to a conference on the topic, on April 11 in Ho Chi Minh City.
While prices of urea fertilizer have hit a 50-year high of up to US$370 per ton, global suppliers are also set to increase imported prices of potassium fertilizer by up to US$20, after a recent increase by US$10, spelling further price hikes in Vietnam.
Vietnam’s rigid policies on fertilizer imports were also blamed for the price surge.
With Vietnamese businesses allowed to import DAP 18-46-0 fertilizer only, Chinese suppliers have cashed in on this restriction, raising prices on their version of the fertilizer as demand surges.
Businesses also pointed the finger at inefficient preparation to deal with domestic demand, which led to the serious supply crunch.
Estimates show that around 430,000 tons of fertilizer is needed for the forthcoming summer-autumn crop, but the Vietnam Fertilizer Association admitted only 280,000 tons are stockpiled.
They warned the shortage would continue hurting Vietnamese fertilizer markets over the next several years if no effective demand forecast measures were adopted. (Youth)
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