According to the Ministry of Finance and the State Taxation Administration, the two departments recently jointly issued an announcement on adjusting export tax rebate policies for photovoltaic and other products. The announcement states that starting April 1, 2026, export tax rebates for certain products including photovoltaic equipment will be abolished. The product list includes active ingredients such as glyphosate, refined glyphosate, acetamiprid, malathion, propamocarb, ethephon, aluminum phosphide, and diazinon. From an industry fundamentals perspective, the pesticide active ingredient market faced overall pressure in 2025, with the Zhongnong Lihua Active Ingredient Price Index reporting 70.94 points, a year-on-year decline of 2.67%. However, performance varied across subcategories, with glyphosate demand standing out. According to data, China's glyphosate production surged from 18,300 tons in 2020 to 120,400 tons in 2025—a 658.38% increase. Industry operating rates remained above 80% for eight consecutive months, indicating a supply-demand balance superior to the sector average.
Notably, the tax rebate policy excludes export rebates for pesticide formulations, signaling encouragement for the industry to extend into deeper processing. Official data shows China's pesticide formulation exports reached 61.36 billion yuan in 2024, surpassing active ingredient exports for the first time and accounting for 54.12% of total exports, indicating a clear trend toward formulation transformation.
In the short term, during the policy window (before April 2026), overseas customers seeking to avoid rising costs are expected to place orders in advance, potentially triggering a temporary surge in export demand. Combined with domestic spring plowing inventory needs, prices for related products like glyphosate may experience temporary increases, alleviating profit pressures for some enterprises.
Medium to long term, the industry will undergo structural reshaping, with resources likely concentrating in technologically advanced leading enterprises possessing full formulation industry chain capabilities. Furthermore, green sectors like biological pesticides and high-end fungicides will become innovation focal points. Biological pesticide active ingredients account for 68% of new pesticide registrations planned for 2025, accelerating domestic production and solidifying the industry's green transformation trajectory.
Adjustments to pesticide active ingredient export tax rebate policies have reinforced expectations for industry structural upgrades, potentially directing capital toward leading enterprises with technological advantages and supply chain integration capabilities. Among these, companies with fundamental support in glyphosate-related businesses, as well as those specializing in biopesticide and high-end fungicide R&D, stand to benefit from the policy orientation toward green transformation and possess potential for valuation recovery.
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