Russia limits fertilizer exports through December amid global crisis

Russia has extended its fertilizer export quotas through December as the global supply deficit deepens due to the war involving Iran and disruptions in the Strait of Hormuz, a strategic route for trade in these inputs.

Russian producers will be allowed to export 20 million tonnes of fertilizers between June 1 and Nov. 30, according to a government statement released on Wednesday (April 22).

The closure of the strait has reduced about one-third of global seaborne fertilizer trade, increasing the risk of a food crisis. Against that backdrop, countries have been seeking alternative suppliers, while major producers such as Russia and China have restricted exports, putting further pressure on prices.

Russia, the world’s second-largest producer, accounts for about 20% of global fertilizer trade and has been prioritizing domestic supply. The current quota stands at 18.7 million tonnes through the end of May, with discounted prices for local farmers.

The new limits include 8.7 million tonnes of nitrogen fertilizers, more than 4.2 million tonnes of ammonium nitrate, and about 7 million tonnes of complex fertilizers.

The restrictions do not apply to shipments to Russia-backed separatist regions, nor to cargo in international transit or destined for humanitarian aid.

Prices for nitrogen fertilizers have already nearly doubled since the start of the Iran war in February. If the closure of the Strait of Hormuz continues, the upward pressure is likely to intensify, potentially leading farmers to reduce nutrient use.

Source: Bloomberg Línea

Sharing is caring!