Russian fertilizer producer Phosagro has committed to a 5pc discount on fertilizers for domestic farming households until the end of the autumn sowing season on 31 October.
The move follows Phosagro's decision last month, alongside fellow suppliers Acron, Uralchem, Uralkali and Eurochem, to cap fertilizer prices in Russia until at least the end of autumn.
The discount applies to finished phosphate products, of which MAP is the most commonly consumed in Russia, and NPKs, both of which are in high demand in autumn.
Phosagro has also outlined a 10pc discount to farming households and open-field vegetable growers who have been affected by natural emergencies and climate problems, such as droughts, flooding or wildfires.
Home advantage
This latest move highlights the pressure some fertilizer producers are experiencing to ensure domestic availability, at affordable prices, in key growing seasons as international prices are booming.
The decision in July to cap prices was in accordance with the wishes of the Russian government. Producers met with representatives from the country's ministries of agriculture, industry and trade, economic development, finance and the federal antimonopoly service in the run up to the announcement.
The unease of some governments around rising fertilizer prices is understandable given the importance of fertilizer consumption to crop production and food security. Prices have soared this year.
The Argus DAP index, a basket of fob prices from the top five DAP exporters, rose by 57pc to 180.3 points in January-July, compared with a 9.8pc rise to 114.7 points a year earlier (see chart).
East of Suez, the top Chinese economic planning agency met with producers in July, reaching an agreement to limit exports and ensure supplies to the domestic market. There has been a dearth of export availability from China since June, barring some sales to Pakistan.
But it is among the major import nations that the situation caused by higher prices is increasingly acute. In India, the world's largest DAP importer, the government has encouraged domestic suppliers to boost DAP availability in recent months, warning of a possible scarcity unless appropriate measures are taken.
