High prices of Nitrogen-based fertilizers hurting the farmers globally
- 19-Apr-2022 9:18 AM
- Journalist: Patrick Knight
Although Russia isn’t one of the largest exporters of bulk nitrogen, it still exports a great deal of downstream products like ammonia, urea and other nitrogen-based soil nutrients and non-nitrogen fertilizer products like potash. The western sanctions on Russia to ban imports of these products have really affected the farmers globally. Especially in the US, as it is the prime season for growing corn, which usually is grown with the aid of a large quantity of fertilizers.
The Russia-Ukraine conflict has had an impact on various industries and the agriculture sector is one of them. The conflict has increased the prices of fertilizers to such a level that farmers globally are preparing to use a lower amount of fertilizer or reduce the acreage of cultivation. Experts warn that the developing countries are most likely to be struck due to fewer financial resources and may even face a food crisis. Crops like wheat, soy, corn, and rice require a substantial amount of fertilizers, so all the cultivation of these crops in countries like Peru, Brazil, United States are disrupted by the shortage of imports of fertilizers from Russia.
To counter this demand for fertilizers, farming powerhouses like Brazil have decided to reduce the usage of fertilizers in the cultivation of corn. Small farmers in Kenya and Zimbabwe have reverted to manures to aid the nourishment of their crops. This surge in fertilizer prices had led to the country of Peru declaring an emergency over food security.
According to ChemAnalyst, the cost of Bulk nitrogen is expected to rise as the downstream fertilizer sector is in high demand, and countries are struggling to meet their needs as the sowing season for a few crops has started. The only chance to soften the prices is when China decides to ease their restriction on fertilizer exports, which was imposed to reduce the price in the local Chinese market.