Egypt scraps fertilizer export duty after exports decline

The Ministry of Investment and Foreign Trade has scrapped the export duty on nitrogen fertilizers effective Aug. 1, after falling global fertilizer prices made the levy an added burden on the competitiveness of Egyptian products in foreign markets.

Exports of Egyptian fertilizers rose to about $1.69 billion in the first half of this year, an 11.1% increase from the same period in 2025, according to data from the Central Agency for Public Mobilization and Statistics cited by Al Mal. But June exports fell about 12% year on year to $135.7 million, from $154.2 million in the same month last year. This coincided with a decline in nitrogen fertilizer export prices, which fell to about $550 per ton from nearly $900 in April.

Under Ministerial Decree No. 340 of 2026, the ministry canceled previous decisions that imposed an export duty on nitrogen fertilizers, including the initial $90-per-ton levy, which was amended in June to 10% of export value.

Khaled Aboul Makarem, chairman of the Chemical and Fertilizers Export Council, told Al Manassa that scrapping the export duty would support the fertilizer sector and strengthen its ability to achieve solid export growth through the end of the year.

An official at a private fertilizer producer, who asked not to be named, told Al Manassa there were indications that fertilizer exports declined in August. The official said this reflected the burden the export duty had placed on exporting companies.

The duty was scrapped after Egyptian nitrogen fertilizer prices fell about 39% from their April peak, according to Aboul Makarem, who linked the decision to efforts to strengthen the competitiveness of Egyptian exports in foreign markets.

Part of the price movements in the fertilizer market is linked to energy costs, with natural gas a key component of nitrogen fertilizer production costs, alongside supply and demand and developments in global markets.

At the same time, renewed tensions in the Middle East could put upward pressure on energy and fertilizer prices in the coming period after Brent crude futures topped $109 a barrel in September amid concerns over disruptions to oil and gas supplies.

Higher energy prices can have a mixed effect on the fertilizer sector. They may support global fertilizer prices while also raising production costs, meaning their ultimate impact on Egyptian companies’ profits will depend on movements in both gas and fertilizer prices.