Ministry of Agriculture and Rural Affairs: Guide pesticide enterprises to cluster in industrial parks on a case-by-case basis and implement differentiated management.

Reply to Proposal No. 6024 of the Fourth Session of the 13th National People’s Congress

Delegate Dang Yongfu:

We have received your proposal regarding the classified management of pesticide enterprises and their appropriate relocation to industrial parks. After consultation with the Ministry of Finance and the Ministry of Ecology and Environment, we hereby respond as follows.

I. On Guiding the Relocation of Pesticide Enterprises to Industrial Parks Through Categorization

Pesticides are an indispensable input for agricultural production, directly affecting agricultural safety, the quality and safety of agricultural products, and ecological environmental security. In China, pesticide manufacturers are numerous but small in scale, with low industrial agglomeration and a production layout lacking systematic planning. In particular, some older pesticide enterprises are scattered around urban areas in densely populated zones, giving rise to the increasingly prominent issues of “chemical plants encircling cities” and “cities encircling chemical plants,” which pose significant potential environmental risks and hinder the enterprises’ own development. Guiding pesticide producers to locate within chemical or industrial parks has thus become an inevitable trend. The Ministry of Agriculture and Rural Affairs attaches great importance to the development of the pesticide industry, working to improve relevant regulations and guidelines, and directing provincial agricultural and rural departments to standardize pesticide production licensing while providing categorized guidance to encourage enterprises to cluster in designated parks. Articles 8 and 14 of the Measures for the Administration of Pesticide Production Licensing clearly stipulate requirements for pesticide manufacturers seeking to enter industrial parks: First, newly established chemical pesticide manufacturers, as well as non‑chemical pesticide manufacturers expanding into chemical pesticide production, must set up their facilities within chemical industrial parks at or above the provincial level. Second, newly established non‑chemical pesticide manufacturers, household hygiene insecticide producers, or chemical pesticide manufacturers adding active ingredient (technical grade) production capacity must locate in chemical or industrial parks at or above the prefecture‑level. Third, when chemical pesticide manufacturers change their production sites, they must move into chemical or industrial parks at or above the city level; any new production site must be registered in accordance with the procedures applicable to newly established pesticide manufacturers. These provisions comprehensively address the developmental needs of both existing and newly established pesticide producers, differentiating between chemical pesticides, non‑chemical pesticides, and hygiene insecticide manufacturers in terms of park‑entry requirements, thereby ensuring lawful, scientific, standardized, and orderly progress. Meanwhile, the Ministry of Ecology and Environment has issued the Notice on Effectively Strengthening Risk Prevention and Strictly Managing Environmental Impact Assessments, mandating that projects—such as those in the chemical and petrochemical sectors—that may pose environmental risks must be sited within industrial parks that have been legally established, are equipped with complete environmental protection infrastructure, and have undergone planned environmental impact assessments. According to the National Economic Industry Classification, pesticide manufacturing falls under the category of chemical raw materials and chemical product manufacturing; therefore, new pesticide manufacturing projects should be located in qualified chemical industrial parks.

Going forward, our department will work closely with relevant authorities to earnestly implement the pertinent regulations on pesticide management, scientifically formulate the 14th Five-Year Plan for the development of the pesticide industry, and strengthen planning guidance in areas such as industrial layout, structural adjustment, and green production. We will optimize the industrial landscape, promote the concentration of the pesticide sector in regions with comparative advantages in production factors, continue to advance classified入园 management for pesticide enterprises, and foster the transformation, upgrading, and sustainable, healthy development of the pesticide industry.

II. On Conducting Categorized Rectification and Upgrading of Pesticide Enterprises

In 2018, the Ministry of Ecology and Environment, in collaboration with the National Development and Reform Commission, issued the Action Plan for the Tough Battle on Yangtze River Protection and Restoration, stipulating that no new chemical industrial parks are permitted within one kilometer of the banks of the Yangtze mainstream and its major tributaries, and that illegal or non-compliant industrial parks must be shut down and abolished in accordance with the law. Focusing on the Yangtze mainstream, major tributaries, and key lakes and reservoirs, a comprehensive campaign was launched to rectify “scattered, chaotic, and polluting” water‑related enterprises, implementing measures such as closure and prohibition, consolidation and relocation, and upgrading and transformation, while phasing out outdated production capacities that contribute to pollution in line with legal requirements. In coordination with the Ministry of Industry and Information Technology, the Ministry of Ecology and Environment carried out categorized actions—relocation, conversion, closure, and upgrading—for more than 8,000 chemical enterprises, promoted the improvement and upgrading of retained chemical industrial parks, initiated the certification process for chemical parks, further standardized park management, and encouraged pesticide manufacturers within these parks to upgrade their operations and adopt cleaner production practices. Meanwhile, the Ministry of Agriculture and Rural Affairs, in accordance with the “delegation, regulation, and service” reform agenda, refined the pesticide registration and approval system, encouraged mergers and reorganizations among pesticide companies to enhance their scale and competitiveness, and, grounded in domestic needs while embracing global markets, facilitated industrial upgrading and structural adjustments to bolster market competitiveness.

Going forward, the Ministry of Agriculture and Rural Affairs will strengthen research and surveys, solicit extensive input from pesticide manufacturers and academic‑research institutions, and further refine pesticide management policies. The concept you proposed—classifying pesticide producers into red, yellow, and green categories—will be carefully examined during the formulation of the 14th Five-Year Plan for Pesticide Industry Development. Drawing on the three‑category management framework—prohibited, restricted, and encouraged—outlined in the “Guidance Catalogue for Industrial Structure Adjustment (2019 Edition),” we will refine the catalogue guiding industrial restructuring in the pesticide sector, implement differentiated regulatory measures, and provide targeted support to help pesticide enterprises grow stronger and more competitive, thereby continuously enhancing their market competitiveness.

Thank you for your concern regarding our department’s work, and we hope you will continue to support the “Three Rural Issues” initiatives.

Contact organization and telephone number: Department of Crop Production Management, Ministry of Agriculture and Rural Affairs, 010-59192847.

Ministry of Agriculture and Rural Affairs

June 30, 2020

Source: Ministry of Agriculture and Rural Affairs