Confusion in the domestic press over fertilizer prices
There’s widespread confusion in the domestic press as to whether the government has approved raising fertilizer prices. Unnamed government sources told AMAY on Thursday that cabinet had approved a hike in prices demanded by producers, who say they’ve been hit by the float of the EGP and the phase-out of fuel subsidies, but the Agriculture Ministry issued a press release yesterday denying the reports, according to Ahram Gate. The head of the Agriculture Ministry’s agricultural reform committee warned that an increase in fertilizer costs might push farmers to stop farming altogether, according to Al Mal. Meanwhile, some transport companies are reportedly refusing to deliver fertilizers to government warehouses until contracts are revised to reflect the new fuel rates they’re paying. Abu Qir Fertilizers and Chemicals said companies transporting fertilizers have demanded a price increase of 40-50% to match the increase in fuel products Al Mal reported. The company’s head also said his company has lost EGP 180 mn after delivering 120k tonnes of fertilizer to the government at prices set before the EGP float and fuel cost increase.