The government will expand domestic stockpiling and promote diversification of import sources to ensure a stable supply of vehicle urea amid increasing domestic demand fluctuations depending on the supply chain situation.
On the 25th, the government announced the vehicle urea supply stabilization plan at the 'Supply Chain Stabilization Committee' chaired by Minister of Economy and Finance 최상목.
According to the plan announced that day, the government decided to support the price difference for the quantity imported from sources of urea in the Middle East and Europe.
The quantities eligible for price difference support will increase from the current 4 months to 5 months, and the subsidy rate will rise from the current 50% to a maximum of 90%.
The government anticipates that securing the annual domestic demand of 90,000 tons of vehicle urea will require about 4 billion to 5 billion won in financial support.
At the Supply Chain Committee that day, the government reviewed options for securing vehicle urea, including ▲ domestic production and ▲ expanding stockpiling and import sources.
The review concluded that while domestic production would have a significant effect on stabilizing supply, it was estimated to incur considerable expenses.
A government official noted, 'It is estimated that producing vehicle urea domestically would incur expenses of 26 billion to 29 billion won annually' and 'If converted to operational costs over 20 years, producing 50,000 tons would require 510 billion won, and producing 70,000 tons would require 580 billion won.'
In contrast, the plan to expand stockpiling and import sources is estimated to cost a maximum of 7 billion won annually (stockpiling expansion: 1 billion to 2 billion won, import source expansion: 4 billion to 5 billion won).
A government official stated, 'The plan to expand stockpiling and import sources has relatively lower expense burdens and is evaluated to have higher policy flexibility,' adding, 'Based on this, we will build a stable supply system that will not cause public anxiety due to external disturbances.'
The government plans to strengthen monitoring of overseas urea production to prevent concerns about supply for vehicle urea. It will maintain a weekly inspection system for urea prices, sales volumes, and stockpiling quantities currently in operation, and strengthen monitoring of major importing countries like Vietnam to prevent a recurrence of urea shortages.
A government official stated, 'Regardless of what situation arises, we will design incentives such that reliance on imports from specific countries does not become excessively concentrated.'