The objective of this decision is to limit the significant increase in production costs during the recent period, the source added.
The Egyptian government is considering raising the prices of subsidized fertilizers by up to 30%, to about EGP 6,250 per ton, compared to EGP 4,800 currently, according to a government official who spoke to Asharq Bloomberg.
The objective of this decision is to limit the significant increase in production costs during the recent period, the source added.
The government obligates fertilizer producers to supply 55% of their production at a subsidized price to the Egyptian Ministry of Agriculture to cover the local market's needs, in exchange for allowing them to export the remaining quantities.
Recently in July, fertilizer prices on the free market rose by about 54% due to the gas shortage crisis last June, reaching EGP 20 thousand per ton compared to EGP 13 thousand in May.
In Egypt, farmers are provided with seasonal shares of fertilizer at reduced prices. These shares are distributed by the Ministry of Agriculture through cooperative societies.
However, because the amount of subsidized fertilizer allocated is limited, many farmers have to buy extra quantities from the open market to fulfill their requirements. This additional purchase reflects the actual market price of the fertilizer.
