Fertilizer Frets Pervade Trade Industry

first_img Fertilizer Frets Pervade Trade Industry SHARE With springtime farming preparations wellunderway, the North Korean authorities are said to be forcing traders to do business in fertilizersonly, even going as far as ordering trading companies around the country to importfertilizers over all other goods, Daily NK has learned. “Afew days ago, state branches affiliated with the Cabinet and trading companiesof various tiers [categorized by the number of workers] were ordered to prioritizefertilizer imports over all other tasks,” a source from North Pyongan Provincetold Daily NK on Monday. “The Cabinet ordered the State Planning Commission to stopissuing licenses that don’t involve the import of fertilizers.” She added, “Customsoffices along the borders have also received orders to regulate the inflow ofall items other than those of national importance.” The firms have not been allotted specific quotas, but instead were told their loyalty willbe evaluated based on the final imports and thus upping the competition between them.Becauseof this, trading companies and foreign-currency earning enterprises placed importing fertilizers as the primary goal for the first quarter. This, of course, stems from the fact that failure to meet the quotas during this period would exclude them from receiving tradelicenses until the end of this year, according to the source.Trading companies of all tiers are required to submit every February a report onquarterly export and import plans. Based on this, they receive trade licenses–without them they are unable to conduct normal trade with firms in China. Officials are able to force traders intoimporting fertilizers using the issuance of trade licenses as leverage.“Theheads of these state-run firms have no choice but to move quickly to securefertilizers in their effort to avert any disadvantages, but they are requestingcheap fertilizers from Chinese traders in order to cut down on costs,” she said. “The result is an influx of cheap fertilizer of bad qualitysince all traders care about is lower costs.” The directive echoes a similar one dating back a few years, wherein thestate ordered trading companies to import chemical fertilizers. Naturally, organizations procured the cheapest–and in this case poorest quality– option available. “Farmers, who complain about the inefficacyof these Chinese fertilizers and the amount wasted, point out how thesedirectives do little–if anything– to help secure a bountiful harvest,”the source explained. Joining in on the criticism are trade officials, who scoff at state propaganda touting the domestic “day and nightproduction” of fertilizer when they know, as is generally the case with state media, how far it strays from reality. News Facebook Twitter News AvatarChoi Song Min US dollar and Chinese reminbi plummet against North Korean won once againcenter_img RELATED ARTICLESMORE FROM AUTHOR There are signs that North Korea is running into serious difficulties with its corn harvest News North Korea Market Price Update: June 8, 2021 (Rice and USD Exchange Rate Only) By Choi Song Min – 2015.04.07 3:35pm NewsEconomylast_img

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