CPIA Proposes to Retain Export Rebate for Dicofol and Carbofuran     

China eliminates export rebate for more than 30 kinds of pesticides, effective August 1st, 2008. (CCR2008 No. 23)
   Dicofol family and carbofuran are included in the list for the elimination of export rebate.
   CPIA (China Crop Protection Industry Association) submitted a report to competent departments, stating that taking into account high pollution and high risk of pesticides production, China should retain the export rebates for dicofol family and carbofuran.
    "The skyrocketing price rise of crude oil in the international market has led to a drastic increase of the pesticide production cost and growing prices of pesticides," said Sun Shubao, Secretary-General of CPIA, "The policies restricting the pesticide production such as eliminating export rebate and processing trade at this time will likely result in a low operating rate in pesticide enterprises, increase the maintenance cost of production equipment, further raise the production cost, and then push further price rise of agricultural products and aggravate the inflation pressure."
   Pests and diseases to farm crops in China are getting more and more serious in recent years. The control on some pests mainly depends on carbofuran granular varieties and seed-coating varieties. There are yet no substitutes that can have the same effects as carbofuran in Chinese pesticide market.
    Dicofol is an organochlorine miticide. With its low cost, good effect and little drug resistance, dicofol family is warmly welcomed by farmers. Dicofol has become a core pesticide in the Chinese market that can solve the drug resistance of mites. The demand for dicofol presents an increase trend of in both domestic and overseas markets.
   According to CPIA, besides meeting the market demand, domestic pesticide producers should be committed to some reserves to cope with major crop incidences of pests and diseases. In case no natural disasters happen, pesticide producers can meet the global market demand for dicofol and carbofuran.
   Experts say that the exports of pesticides can help keep the pesticide production more balanced in slack pesticide demand, reap higher investment returns, reduce the production cost and lighten farmers' burden in making input in pesticides.
   The content of effective ingredients in dicofol produced in China has already increased from 80% to more than 95%. The content of DDT and other impurities has reduced from 15% to less than 0.1%. The dicofol family produced in China conforms to the quality standard of FAO. Yangnong Group, a leading dicofol producer in China, has formed a 2 000 t/a capacity of dicofol, using the closed-loop production process.