Evergrow, one of the largest fertilizer producers in the domestic market, has raised the price of free market fertilizer by approximately 4,000 Egyptian pounds to reach 34,000 pounds (around $650) per ton, the company’s chairman, Mohamed Elkheshen, told Al Manassa. The hike comes amid reports of a record surge in fertilizer prices due to the repercussions of the war on Iran.
Last week, Reuters reported that India, one of the world’s largest importers of urea, a key component in fertilizer manufacturing, agreed to buy the raw material at nearly double the pre-war price, serving as a significant indicator of rising global fertilizer costs.
Locally, fertilizer companies had already raised prices this month from 23,000 pounds ($440) per ton to nearly 30,000 pounds (about $575), driven by higher domestic gas prices. Globally, prices have soared as infrastructure in the Gulf, one of the largest urea-producing regions, was damaged by Iranian shelling.
While the Ministry of Agriculture requires private sector producers to allocate a percentage of their output for subsidized fertilizer, warnings of shortages in supplies intended for subsidized agriculture are mounting.
“We have a shortage of some subsidized fertilizers within agricultural associations, which has forced some farmers to resort to the informal market. This has contributed to price increases and created instability in distribution,” Emad Abu Hussein, former head of the Farmers Syndicate, told Al Manassa.
He added that governorates such as Sharqiya, Beheira, and Kafr El-Sheikh are among the hardest hit by this shortage due to their heavy reliance on agriculture, particularly for strategic crops like wheat and rice.
Agriculture Minister Alaa Farouk denied the existence of a subsidized fertilizer shortage. However, speaking to Al Manassa, he acknowledged delays in distribution at agricultural associations “due to inventory audits in warehouses” in preparation for the start of the summer season disbursements.
Farouk noted that “the winter season fertilizer entitlements were fully distributed to farmers without any issues.”
The minister added that distribution for the summer season will begin early next month, with total requirements estimated at about 900,000 tons per month, depending on crop types and cultivated areas.
The minister emphasized the state’s commitment to providing fertilizers regularly and ensuring they reach farmers through official channels to support agricultural stability and achieve production targets.
Ahmed Hagras, head of Agritrade for fertilizers, said that the rise in global prices is strongly incentivizing companies to export during this period, but he denied that this serves as a motive to limit the quantities offered locally.
“The priority is always to meet the needs of the local market first, after which export permits are issued to factories according to the available surplus,” Hagras told Al Manassa.
He added that prices reaching about 34,000 pounds per ton is natural given the local market’s link to global prices, as the surplus is directed either for export or local sale at a price consistent with the export rate.
