Russian fertilizer export controls are now official.
In fact, according to a statement of the Prime Minister Mikhail Mishustin during a televised government meeting on this morning, Russia will impose a six-month quota on some fertilizer exports to safeguard local supplies and limit costs for farmers.
Russia’s decision arrived after President Vladimir Putin urged measures to ensure supplies for local farmers.
That, however, risks curbing harvests in the year ahead and accelerating food inflation in the rest of the world.
Particularly, the government will limit nitrogen fertilizer exports to 5.9 million tons and shipments of complex fertilizers containing nitrogen to 5.35 million tons.
The measures will kick in at the start of December.
According to some analysts, the quotas will mainly impact nitrogen fertilizer exports, cutting shipments by about 40%.
Meantime, others thinks that the measures won’t affect complex fertilizer sales much because the quota is roughly in line with how much Russia exports.
Russian farmers mostly use ammonium for spring planting, while urea is the main nitrogen fertilizer type in Europe.
Thus, European growers there may face higher prices.
Meantime, on this morning shares of fertilizer producers PhosAgro PJSC dropped as much as 4.2% in Moscow after Mishustin’s speech, while Acron PJSC declined as much as 7.2%, before both stocks pared some of the losses.
Its should to note all this arrive after China had also curbed their exports to ensure enough domestic supply.
