The raw material companies that had legally engaged in chain operations were fined 40,000 yuan for no reason. Yunnan Nong'an Agricultural Resources Sales Co., Ltd. therefore sued the local business department. Recently, in Yunnan Province, the first case in which an agricultural company sued the industry and commerce department was held in the trial in Maitreya County.
Yunnan Nong'an Agricultural Production Material Sales Co., Ltd. is Yunnan's largest privately-owned agricultural chain enterprise with 41 branches and more than 600 chain stores. According to Yang Yongxiang, general manager of the company, in 2004 Nongfu Company established a branch company in Maitreya County and established 20 chemical fertilizer stores. For management needs, the company charged the franchise with a certain amount of deposit. However, the local industry and commerce department decided that Nongfan Co., Ltd. was a rental and lending business license on the basis of this reason. At the beginning of 2005, the company issued a decision on administrative penalty and a fine of 40,000 yuan on Nong Fung. Nong Fung Company disagreed with the decision and applied for administrative reconsideration in Honghe Prefecture Administration for Industry and Commerce in October 2005. The Honghe Prefecture Administration for Industry and Commerce issued an administrative reconsideration decision in December 2005, which maintains the title of “Miyaji Industry Office†(2005). Administrative Penalty Decision No. 231. Therefore, Nongfan Co., Ltd. brought the Miles County Industrial and Commercial Bureau to court in January 2006 and requested the withdrawal of the Administrative Penalty Decision No. 231 (2005).
Manager Zhang of Nongfufeng Maitreya Branch told the reporter that the company used the products of well-known large-scale chemical fertilizer companies inside and outside the province on the purchase channels. Due to the good quality of products operated by the enterprises, low prices and good after-sales service, their fertilizers have been used for two years. Sales have steadily increased, and now it has become a key area for sales of Nongfan Co.
According to a person familiar with the matter, due to the fact that the country has implemented a special system for agricultural products such as pesticides and fertilizers, until today, the management of pesticides and fertilizers has not been liberalized legally. Some localities need protection from local protectionism. They must protect local agricultural capital companies from shocks. Foreign companies take measures to refrain from issuing permits. Excluding foreign investment in the circulation of agricultural capital is also a problem for many foreign agricultural capital chain companies. One of the reasons for the fine.
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