As Egypt’s power systems struggle due to increased consumption rates during this summer’s heatwave, commodity prices are surging.
As Egypt’s power systems struggle due to increased consumption rates during this summer’s heatwave, commodity prices are surging. Talk show host, Ahmed Moussa, revealed last night that urea – a type of fertilizer - prices have recently soared to EGP 700-800 per bag, from EGP 250-300.
Earlier on the same day, Asharq Business cited several sources as saying that fertilizer prices have surged around 54% month-on-month in June so far, jumping from EGP 13k per ton to EGP 20k per ton.
Agriculture Ministry advisor Mohamed Fahim called up Moussa during his Wednesday show, explaining that the current spike in prices is temporary and will stabilize once fertilizer production is back on track.
Two of Egypt’s largest fertilizer companies - State-owned Misr Fertilizers Production Company (MOPCO) and Abu Qir Fertilizers and Chemicals Industries Company (ABUK) - recently suspended production due to natural gas (natgas) shortages.
Head of the Farmers Syndicate, Hussein Abdel-Rahman, recently told media that they expect a 25% in summer agriculture crop prices, including fruits and vegetables, due to the shortage of fertilizers.
Fahim seemingly responded to this during his talk with Moussa, noting that while there is a shortage in the local market, it has yet to affect agricultural operations due to reserves of subsidized fertilizers.
In early June, the Ministry of Petroleum tightened natgas supplies to energy-intensive fertilizer companies by 20-30% to conserve natgas for electricity production.
The decision was also attributed to the EGP’s depreciation against the USD, leading to increased costs of production as the country imports natgas for fertilizer production.
