Russia extends fertilizer export quotas as global supply tightens

Russia has extended its fertilizer export quotas through December as global supply tightens due to the war involving Iran and disruptions affecting trade routes.

Russian producers will be allowed to export 20 million tons of fertilizers between June 1 and November 30, according to a government statement released on April 22. The current quota is set at 18.7 million tons through the end of May, with domestic supply prioritized and discounted prices offered to local farmers.

The disruption to trade flows has reduced about one-third of global seaborne fertilizer movement, leading countries to seek alternative suppliers. At the same time, major producers, including Russia and China, have restricted exports, contributing to upward pressure on prices. Russia accounts for about 20 per cent of the global fertilizer trade.

The updated quota includes 8.7 million tons of nitrogen fertilizers, more than 4.2 million tons of ammonium nitrate, and about 7 million tons of complex fertilizers.

The restrictions do not apply to shipments to Russia-backed separatist regions, cargo in international transit, or humanitarian aid.

Prices for nitrogen fertilizers have nearly doubled since February. Continued disruption to trade routes may sustain price pressure, with the potential for reduced nutrient use by farmers.

Source: Bloomberg Línea / DatamarNews