On August 28, the Ministry of Finance and the State Administration of Taxation jointly issued a document, imposing VAT by 3% tax rate on fertilizer products or inventories generated before September 1 from September 1, 2015 to June 30, 2016. As port inventories of potash fertilizer are sufficient, the new regulation affects potash market greatly. In the short run, it will restrain domestic potash’s sharp rising.

On September 2, the General office of the Ministry of Agriculture issued “the notice on administrative examination and approval affairs of fertilizer registration”, which stated that the Ministry of Agriculture will carry out new fertilizer standards and implement fertilizer registration online declaration. BOABC predicts that the fertilizer industry will be more standardized and orderly, and the products quality will be improved to some extent.