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At the 7th National Pesticide Exchange Conference held on October 30th, it was revealed that the National Development and Reform Commission (NDRC) will implement four key measures to enhance the entry standards for the pesticide industry. These steps aim to address long-standing issues such as the fragmentation of small-scale pesticide companies, which continue to pose risks to public health and the environment.
Chen Shihai, director of the Industrial Development Department at NDRC, emphasized that despite previous efforts, the problem of "small and scattered" enterprises remains unresolved. With growing attention on food safety and environmental protection, especially following the concept of ecological civilization introduced by the 17th National Congress of the Communist Party, stricter regulations are now being enforced on the pesticide sector.
The first measure involves raising the threshold for new pesticide companies. Starting from March 1, 2008, the minimum registered capital required for new original drug manufacturers will be set at 50 million yuan, with a minimum investment of 50 million yuan (excluding land costs), of which at least 15% must be allocated to environmental protection. For preparation (processing and formulation) companies, the minimum registered capital will be 30 million yuan, with an investment of no less than 20 million yuan (excluding land use fees), and at least 8% of this must go toward environmental protection. Additionally, approval for emulsifiable concentrate and microemulsion formulation processing companies will no longer be accepted, and existing preparation companies will need to re-apply for new drug production permits.
Second, the NDRC will issue a revised version of the "Pesticide Enterprises Approval and Continuation Appraisal Key Points," making the evaluation process more detailed and practical in line with current production standards. This will apply when companies undergo name changes or relocations.
Third, the commission will strengthen the continuation approval process. Currently, 1,154 pesticide companies are undergoing review for continued operations. Through stricter assessments, firms lacking proper environmental facilities, failing to meet discharge standards, not adhering to safety regulations, producing highly toxic pesticides, or engaging in counterfeiting will be phased out. By improving coordination between permits and registration certificates, it is expected that 30% to 40% of these companies may fail to meet the new requirements.
Lastly, starting in 2008, the NDRC will publish an annual list of authorized pesticide producers, subject to public scrutiny. Under the "Pesticide Management Regulations," any company not included on the list will be considered illegal. These reforms mark a significant step toward a more sustainable and responsible pesticide industry in China.
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October 07, 2025