Ann: South Erregulla Update, page-171

Fertiliser prices hit record on Russia supply concerns

Emiko Terazono in London

Fertiliser prices are breaking new records as supplies from Russia, the leading exporter, has dwindled, adding further to fears over food security.

Russia’s export ban this month — including key crop nutrients containing nitrogen, potash and phosphates — has sent prices soaring, while farmers were already facing high fertiliser costs because of sanctions on Belarus, a leading potash producer and export restrictions by China.

In Europe, soaring natural gas prices, the main ingredient for nitrogen crop nutrients, have meant that producers including Yara have reduced their output.

The fertiliser index from CRU, a consultancy, has risen 30 per cent since the start of the year, and is now higher than the levels reached during the food and energy crisis when prices jumped in 2008.

Higher fertiliser prices mean costs of production globally will increase, affecting the quality of crops. “Yields could be lower if farmers choose or are forced to reduce fertiliser applications, potentially impacting global production,” warned AHDB, a UK farmers’ advisory organisation.