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This year, the national fertilizer reserves will reach 7.7 million tons. The first batch of 27 companies have signed reserve contracts.
In order to ensure the stable supply of chemical fertilizers for spring farming this year, the country has launched the second batch of 1.65 million tons of off-season commercial reserves, building on the first batch of 6.05 million tons. This initiative reflects the government’s ongoing efforts to manage fertilizer availability and prevent shortages during critical planting periods.
According to recent reports from the National Development and Reform Commission (NDRC), in November 2005, the NDRC and the Ministry of Finance extended storage qualifications to 27 companies that successfully completed their fertilizer destocking tasks from the previous year. These firms have signed contracts for the first batch of off-season fertilizer reserves under the 2005/2006 program, totaling 6.05 million tons. The companies have already begun stockpiling lighter reserve quantities of fertilizers.
This year’s second batch of off-season reserves is also being conducted through a tender process, open to all qualified fertilizer production and distribution companies nationwide. Companies meeting the bidding criteria can participate individually or form joint bids, ensuring broader participation and competition.
The off-season reserve system was introduced in 2005 to address the mismatch between annual fertilizer production and seasonal demand. Through this system, selected companies store fertilizers during off-peak times and release them during peak seasons. The government provides interest subsidies for these reserves and ensures they are available when needed for spring planting.
On November 1, 2005, the NDRC and the Ministry of Finance issued the "Supplementary Provisions on the Administrative Measures for Off-season Chemical Fertilizer Reserves." These regulations specify a six-month storage period, a three-year stability period for reserve contracts, and a performance-based reward and penalty mechanism to ensure accountability and efficiency in the system.
This structured approach helps maintain market stability, supports farmers, and ensures that essential agricultural inputs are available when needed, strengthening the resilience of the nation's food supply chain.