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    Voices from the Two Sessions | Luo Jinren: Please grant green pesticide enterprises greater room to grow! Establish specialized pesticide industrial parks!


    Release Date:

    2020-05-27

    Please grant green pesticide companies greater room to grow.

    The philosophy that “lucid waters and lush mountains are invaluable assets” has increasingly taken root in the public consciousness, and at the national level, environmental policies will only grow progressively stricter. Safeguarding ecological sustainability is integral to every facet of industrial development. In an interview with our reporter, Luo Jinren, a deputy to the National People’s Congress and director of the Key Laboratory for Pesticide Research and Application Technology under the Ministry of Agriculture and Rural Affairs, noted that due to one-sided or even mistaken perceptions of pesticides and the industry, not only do ordinary citizens view them with apprehension, but pesticide manufacturers also frequently face skepticism. He called for greater support and broader room for growth for pesticide companies that adhere to standards and produce environmentally friendly, high‑quality products.
    Representative Luo Jinren stated that during grassroots research conducted alongside the China Pesticide Industry Association, many pesticide companies expressed considerable reluctance. While there is now a push to relocate chemical enterprises into industrial parks—pesticide firms included—the challenge of finding a site that will not draw widespread disapproval remains significant. Pesticide manufacturers and intermediate‑product producers, often misunderstood, are virtually branded as “polluters.” Under mounting environmental pressures, despite the proliferation of investment‑attracting industrial parks across the country, none dare readily welcome such major sources of pollution.
    Representative Luo Jinren stated that in recent years, the industry has experienced several major accidents, some of which have had significant repercussions—for example, the explosion at the Xiangshui Chemical Industrial Park. These incidents have indeed imposed negative impacts on both pesticide manufacturers and producers of pesticide intermediates. However, it is also worth noting that an increasing number of pesticide companies are steadily ramping up their environmental protection investments, prioritizing green production and ensuring that their emissions of “three wastes” fully comply with regulatory standards. Since the launch of reform and opening-up, China’s pesticide industry has made tremendous strides, rising to become the world’s largest producer and a leading exporter of pesticides. Yet, some highly promising enterprises—when undertaking upgrades, relocations, or moves into industrial parks—have encountered obstacles due to biased perceptions. Without targeted policy support and guidance, such companies risk being driven overseas, which would undermine the competitiveness of China’s pesticide sector in the global market. Moreover, the growing cost advantages enjoyed by neighboring countries like India and Vietnam in terms of production and labor costs pose a potential threat to China.
    This year marks the final year of the 13th Five-Year Plan, signaling that the blueprint for the 14th Five-Year Plan is about to take shape. With regard to the industry’s development, Representative Luo Jinren proposed strengthening, at the national level, comprehensive planning and strategic positioning for the pesticide sector, safeguarding the integrity of the industrial chain, and ensuring stable growth across research and development, production, application, and promotion. He also suggested identifying suitable locations nationwide to establish several specialized pesticide industrial parks, thereby fostering the sector’s sustainable and protective development.

    Establish a specialized pesticide industrial park.

    Pesticides are an essential input for agricultural production, playing a critical role in controlling harmful organisms, addressing sudden outbreaks of pests, diseases, weeds, and rodent infestations, and ensuring increased agricultural yields as well as food and grain security. Since the launch of reform and opening-up, China’s pesticide industry has made significant strides, with both its output and export volumes ranking first worldwide. However, throughout this development process, factors such as national and provincial‑level industrial policies, safety regulations, environmental protection requirements, and technological capabilities have constrained the growth of enterprises in the sector—particularly over the past two years, when supply disruptions have been especially pronounced. Luo Jinren, a deputy to the National People’s Congress and director of the Key Laboratory for Pesticide Research and Application Technology under the Ministry of Agriculture and Rural Affairs, recommends promptly formulating comprehensive pesticide industry policies, optimizing production layouts, strategically planning the development of chemical industrial parks from the outset, and establishing specialized pesticide‑focused industrial zones.
    Under China’s industrial policies and restrictions on development in key regions, pesticide manufacturers are trending toward relocating northward and westward. As a specialized segment of the fine chemicals industry, the pesticide sector has long been concentrated in provinces such as Jiangsu, Shandong, and Zhejiang. In recent years, several accidents involving chemical enterprises have prompted shutdowns and inspections at numerous coastal chemical parks, disrupting pesticide supply. According to statistics, the operating rate of pesticide production facilities stood at just 48.4% in 2018, with an even lower figure in 2019. Beyond policy factors, labor costs in the southeastern coastal regions have continued to rise, while shortages of land, energy, and other inputs have driven up both construction and operational expenses. Coupled with the national imperative to reshape the industrial spatial layout, domestic pesticide firms have begun shifting to the northwest—areas characterized by relatively underdeveloped economies and lower labor costs. However, the northwest faces significant challenges, including water scarcity, limited access to chemical feedstocks, and high logistics costs. Compared with coastal regions, its ecological environment is more fragile, posing obstacles to the growth of the fine chemicals industry.
    While China’s pesticide industry faces constraints, countries such as India and Vietnam are vigorously promoting pesticide production, thereby undermining the global competitiveness of Chinese pesticides. Since the Indian government launched its “Make in India” initiative in 2014, the agrochemical sector has expanded rapidly, prompting some suppliers to shift their focus from China to India. Coupled with the environmental regulations and lower labor costs in India, Vietnam, and other nations, the share of products like mancozeb, pyrethroids, carbamates, and pyridine bases in global production capacity has continued to rise, posing a significant challenge to China’s competitive position on the world stage.
    Luo Jinren, on behalf of the delegation, proposed promptly formulating a national policy for the pesticide industry, optimizing production layouts, and guiding the sector toward healthy development. In line with national industrial development policies and national industrial park planning, he recommended undertaking high‑level, coordinated planning for chemical parks, designating suitable zones for pesticide‑industry development, and encouraging the establishment of specialized pesticide parks. At the same time, a standardized regulatory framework should be put in place to strengthen orderly management, enhance the professional capacity of chemical parks to accommodate such industries, and improve their level of specialized administration. Furthermore, chemical pesticide producers should be guided, in a phased and categorized manner, to relocate to these parks, thereby preventing the relocation of pesticide production to environmentally and ecologically fragile areas.
    Source: Agricultural Inputs Herald Pesticide

     

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