The state practices a franchise system for chemical fertilizers. Only supply and marketing cooperatives can do this, and individual industrial and commercial households have no right to operate.
According to the relevant provisions of the State Council's Decision on Franchising Chemical Fertilizer, Pesticide and Plastic Film and the State Council's Notice on Improving the Franchising Measures for Chemical Fertilizer, Pesticide and Plastic Film (Guo Fa [1989] No.87), chemical fertilizer and plastic film are franchised in China.
1, China Agricultural Production Materials Company and agricultural business units of supply and marketing cooperatives at all levels are the main channels for agricultural franchise;
2. Fertilizers, pesticides and plastic films (including plastic films, the same below) required by plant protection stations, soil and fertilizer stations and agricultural technology extension stations (centers) below the county level to carry out technology popularization and paid technical services can be transferred to local farmers at local retail prices.
3, fertilizers, pesticides, agricultural film, production enterprises can sign a contract with the franchise units to order or joint sales, consignment or direct sales to farmers for their own use.
The above units operate pesticides, fertilizers and plastic films without approval, and no other unit may operate pesticides, fertilizers and plastic films. After the reform of agricultural companies in the supply and marketing cooperative system, as long as the supply and marketing cooperatives are still absolutely holding shares, the reformed agricultural companies can also operate pesticides, fertilizers and agricultural films. However, enterprises established by agricultural companies holding or holding shares or enterprises restructured into other forms cannot engage in pesticides, fertilizers and agricultural films.