During the first half of 2013, the volume and value of China’s glyphosate export have increased by 27.22% and 76.12% and the figure is still climbing. However the rat race led by the production expansion after price elevation looked more fearful to the industry. According to a recent symposium held by CCPIA, the rising price might be a short momentum as the market would soon become oversupplied by the producers. Furthermore, the industry is nervous about the recently enacted environmental verification (See ChemLinked News release on May 28 2013 ) and Wynca’s polluting case.(See ChemLinked News release on Jun 26 2013 )
As the leading exported pesticide of China, glyphosate accounted for 20% export value of China’s crop protection products in the past years. During the first half of this year, the export of glyphosate has reached 341,500 tons, accounted for 38.8% of the total pesticide export volume. In terms of money value, the export of glyphosate worth 1.305 billion dollars, accounted for 29.02% of the total exports, whereas the import has reduced by 18% and the export growth of the glyphosate TC is 60% larger than the formulated products.
China exports the herbicide to 127 countries and regions and most of the glyphosate TC has been sold to Americas while formulated products were exported to Africa and the developing countries in Asia. 104 ICAMA registrants have sold 178 glyphosate products to the above markets. Among them, 16 producers have exported more than 10 million dollars and their overall export took up 85% of China’s glyphosate export.
Dr. Sun Shubao, chairman of the CCPIA stated that the irrational scene of production expansion after 2008 is reappearing and he criticized the producers as “pain is forgotten where gain follow”.
“Though the price has grown from 4563 dollars to 5390 dollars in the past six months, the elevation would not be sustainable due to production expansion.” commented Li Xiaoni, vice president of CCCMC (China Chamber of Commerce of Metals, Minerals& Chemicals importers & exporters).When talking to the newly enacted environmental verification, she affirmed that she will make suggestion to the Ministry of Commerce to further ensure the interests of the regulatory compliant producers. The herbicide should be subject to the administration of export license and companies’ environmental performance should be a benchmark to help judging whether to grant them the exporting license.
Zhang Bo, senior engineer at ACEE (Appraisal Center of Environment& Engineering, Ministry of Environmental Protection) revealed that glyphosate industry is not the first target of environmental verification. MEP has imposed similar measures on other industries and the industries have well developed after the verification. The verification is not aim at reducing the productivity of the industry, but at promoting the sustainable growth of the industry by elevating the environmental responsibility.
If the company is determined to improve the performance and a substantial rectification is completed, it is still a qualified candidate for the verification regardless of its polluting history in the past. Though the verification is on a voluntary base and a 3-year grace period is provided for the companies, it is not hard to predict that the disqualified producers will have less and less living space in the future. “The verification is a gift to the environmental compliant producers rather than a threat to the whole industry!” said Wang Xiaomi from Department of Prevention and Control of MEP.
MEP is not the isolated authority responsible for implementing the verification, the disqualified companies would also be forbidden by the MOA from applying pesticide registration, production authorization and production license. The compliant producers will receive preferable tax rate while the disqualified ones will be subject to heavier taxation.
When talking about the pollution investigation of the Zhejiang glyphosate manufacturers, Mr. Wang cautioned that the industrial verification does not substitute for the routine environmental supervision.
