The market price of fertilizer plummeted by 10,000 Egyptian pounds (about $190) per ton this week, reaching an average of 28,000 pounds (about $535) down from 38,000 pounds last week. Five traders and farmers confirmed the figures to Al Manassa, attributing the decline to softening demand and an increase in supply within the local market.
The drop follows the government’s decision earlier this month to impose a $90-per-ton fee on all nitrogenous fertilizer exports. A source from the Ministry of Investments justified the move at the time as an attempt to control local prices following successive jumps caused by regional tensions and rising energy prices.
To maintain domestic supply, the government requires producers to deliver 20% to 25% of their fertilizer output to the Ministry of Agriculture at subsidized rates before approving any export shipments.
Mohamed Elkheshen, head of the Fertilizer Distributors Association and chairman of Evergrow, said the price drop stems from sluggish local trading of free-market fertilizers rather than lower production costs, noting that subsidized fertilizers continue to circulate well.
He added that companies were absorbing local price cuts through robust export revenues and consistent international demand. Conversely, domestic demand has shifted almost exclusively to subsidized products as the agricultural season ends and fertilizer needs diminish.
Ahmed Hagras, chairman of Agritrade, agreed, noting that a seasonal lull in the local market contributed significantly to the price decline. He explained that consumption typically drops as the fertilizer application season ends, coinciding with the wheat harvest and a a temporary cessation of new plantings. The new planting season is expected to begin in mid-June.
Hussein Abdel Rahman, head of the Farmers Syndicate—one of Egypt’s unofficial farmers’ unions—also attributed the price drop to falling consumption and the start of the wheat harvest.
Former syndicate head Emad Hussein agreed, noting that free-market urea and nitrates now range between 26,000 and 28,000 pounds (about $495 to $535) per ton. He expects further declines as demand weakens, while subsidized fertilizers distributed by agricultural cooperatives remain at approximately 6,000 pounds (about $115) per ton.
In Mansoura, retail fertilizer trader Hazem Abdel Hadi said prices fell during this harvest season to between 28,000 and 30,000 pounds per ton (about $535 to $570) for consumers, coinciding with a lower demand.
