Egypt to increase subsidized fertilizer prices by up to 30%

CAIRO – 22 July 2024: The Egyptian government is contemplating a potential increase in subsidized fertilizer prices. A government official, who spoke to Asharq Bloomberg, revealed that the prices may rise by up to 30 percent, reaching around LE 6,250 per ton compared to the current price of LE 4,800.

 

 The objective behind this decision is to mitigate the significant surge in production costs experienced recently.

 

To meet the local market's demands, the government mandates that fertilizer producers allocate 55 perecnt of their production at subsidized prices to the Egyptian Ministry of Agriculture. In return, producers are permitted to export the remaining quantities.

 

 However, the shortage of gas in June led to a crisis, causing fertilizer prices on the free market to surge by approximately 54 percent in July. During that time, prices skyrocketed to LE 20,000 per ton compared to LE 13,000 in May.

 

In Egypt, farmers are provided with reduced-price seasonal shares of fertilizer, distributed through cooperative societies by the Ministry of Agriculture. 

 

Nonetheless, due to the limited allocation of subsidized fertilizer, many farmers are compelled to purchase additional quantities from the open market to meet their requirements. These additional purchases reflect the prevailing market price of the fertilizer.