MIIT Announces Policy Draft for Pesticide Industry        

Recently the Ministry of Industry and Information Technology (MIIT) released a policy draft for the pesticide industry with the aim to invite comments and suggestions. Together with the release of this policy draft, MIIT also released a draft named Permit Conditions for Manufacturing Pesticides.
    Pesticides play an important supporting role in the development of the domestic economy. But the production and use of pesticides have always been accompanied by some degree of concern about the chemicals' risks to public safety and the environment. So the central government will provide guidance and strict administration for the development of the pesticide industry.
   The new policy aims to build for the pesticide industry a market situation with fair competition, sufficient harmony and effective management through completing three systems:
    * to control the total supply and capacity,
  * to push the industry to develop moderately, responsively and systematically,
    * to meet domestic needs well and avoid the chaotic expansions that take exports as final target without regard for excessive resource consumption and environmental pollution.
   The policy draft suggests that pesticide companies should relocate in special zones or chemical cluster parks in order to reduce environmental and safety risks. A series of targets were set for 2015. More than half of all pesticide technical manufacturers will locate their production sites in special zones, the number of pesticide technical manufacturers will decrease by 30% or more to 350 (CPCIA suggested 200 in its guidance report). Innovations in pesticides will be supported firmly. R&D budget shall be at least 3% of companies' total sales revenue. More than 30% of exported pesticides shall be innovated by Chinese firms. Waste discharges will be reduced by 30% from the current level.
    New or relocated pesticide technical factories must align with the central government's program, local programs and city development programs when selecting sites. They shall be far away from the regions with fragile or sensitive environments. The existing factories that do not meet the location requirements are not allowed to add new pesticide technical to their portfolio or expand capacity. The government will set up a phase-out system for eliminating pesticide manufacturers and encourage the development of pesticides that are safe, economical, high potency and environmentally friendly. Hence a directory regulating the encouraged pesticides, the controlled pesticides and the prohibited pesticides will be issued by the central government in accordance with the actual conditions.          
    MIIT's policy draft heavily emphasizes the importance of innovation. The government will strengthen protection of the intellectual property rights and innovations of pesticide manufacturers, in procedures like R&D, production, sales and exports. Guidance for the technological development of the pesticide industry will be organized by the government. A company that is eager to innovate will get financial support.
   The central government will implement a system to grant permission to produce pesticides. Management of the import and export of pesticides will be strengthened. The policy draft also covers a recall system, an emergency treatment system, clean production, pollutant treatment, environmentally friendly packaging, responsible care, credit rates, etc.