{"id":672492,"date":"2025-09-25T00:00:00","date_gmt":"2025-09-25T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2025\/09\/25\/govt-mulls-moves-to-support-the-fertilizer-sector\/"},"modified":"2025-09-25T00:00:00","modified_gmt":"2025-09-25T00:00:00","slug":"govt-mulls-moves-to-support-the-fertilizer-sector","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2025\/09\/25\/govt-mulls-moves-to-support-the-fertilizer-sector\/","title":{"rendered":"Gov\u2019t mulls moves to support the fertilizer sector"},"content":{"rendered":"

More support for fertilizer producers? <\/strong>The Madbouly government is currently mulling ways it can further support fertilizer players, boost production, and attract new investments to the sector, three government sources told EnterpriseAM. The end goal is to boost sector exports to meet rising global demand for fertilizers. <\/p>\n

(Tap or click the headline above to read this story with all of the links <\/strong>to our background as well as external sources.)<\/p>\n

Pricing remains an issue: <\/strong>Producers are once again asking for the state to increase the price of subsidized fertilizers in light of rising gas prices, the sources said, adding that the brief period this summer when factories had to halt production due to gas shortages resulted in some costly fines, which in turn increased production costs. Fertilizer producers want to price subsidized fertilizer at EGP 6k per ton up from EGP 4.5k at the moment \u2014 they also want higher export quotas. <\/p>\n

IN CONTEXT- <\/strong>Subsidized fertilizer prices remain set administratively \u2014 leaving a clear gap with freemarket prices. This risks leakage of subsidized stock to the black market, an issue the Agriculture Ministry continues to battle.<\/p>\n

The state\u2019s plan: <\/strong>The government is looking into a plan that would divide production into three tranches \u2014 the smallest tranche will go to the Agriculture Ministry, which will supply the fertilizers to farmers at a subsidized rate, the second smallest tranche will be sold in the freemarket through public auctions, and the third and largest tranche will be earmarked for export.<\/p>\n

In order to keep both producers and farmers happy<\/strong>, the Agriculture Ministry could start paying more for subsidized fertilizer, while still selling it to farmers at the subsidized rates with the Finance Ministry bearing the difference in prices, one of the sources said. <\/p>\n

The quantities supplied to the Agriculture Ministry may shrink to 37-40% of companies' <\/strong>production<\/strong>, which would still be enough to meet farmers\u2019 needs, according to one source. At the moment, suppliers need to sell 55% of their supplies to the ministry \u2014 a quota they haven\u2019t been able to meet due to production declines. <\/p>\n

Nothing is set in stone: <\/strong>The government is still mulling all these scenarios and is yet to make a final decision. <\/p>\n

A priority sector: <\/strong>The sector is under the government\u2019s spotlight as it anticipates the entrance of new players, which will in turn boost production. <\/p>\n

The government raised natural gas prices for factories starting 15 September <\/strong>and has directed all fertilizer-producing companies to sign a protocol that sets the quantities supplied to the Agriculture Ministry, freemarket, and export, according to a statement<\/a>. While the statement didn\u2019t provide any details regarding the gas price increase, EnterpriseAM earlier this week reported<\/a> that the Oil Ministry will raise natural gas prices for factories by USD 1 per mn British thermal units (BTU).<\/p>\n

Fertilizer companies<\/strong> are yet to be notified <\/strong>of the price hike or the new quotas, officials from three different fertilizer players told EnterpriseAM.<\/p>\n","protected":false},"excerpt":{"rendered":"

Fertilizer producers want to increase subsidized pricing<\/p>\n","protected":false},"author":1,"featured_media":672493,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7305],"tags":[317,72,99,91],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-672492","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-commodities","tag-commodities","tag-enterpriseam","tag-fertilizers","tag-oil-and-gas","wpautop","entry"],"acf":{"mongo_id":"883b00f5-c34e-49de-b255-665e673ad77a","order":"6","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2025\/6\/511.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Egypt mulls moves to support the fertilizer sector","related_issue":[672484],"teaser":"Fertilizer producers want to increase subsidized pricing","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2025\/9\/.af05bf1b-5f56-49e9-9201-c78befece5b6.mp3"},"yoast_head":"\nGov\u2019t mulls moves to support the fertilizer sector - 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Unnamed government officials told Reuters this amounted to an increase of EGP\u2026","rel":"","context":"In "Commodities"","block_context":{"text":"Commodities","link":"https:\/\/enterpriseam.com\/egypt\/category\/industries\/commodities\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":690878,"url":"https:\/\/enterpriseam.com\/egypt\/2026\/03\/31\/egypt-moves-to-link-fertilizer-feedstock-costs-to-international-gas-prices\/","url_meta":{"origin":672492,"position":1},"title":"Egypt moves to link fertilizer feedstock costs to international gas prices","author":"enterpriseam admin","date":"31 March 2026","format":false,"excerpt":"For producers of nitrogen-based fertilizers like urea and ammonia in Egypt, natural gas accounts for roughly 70% of production costs","rel":"","context":"In "The Big Story Today"","block_context":{"text":"The Big Story Today","link":"https:\/\/enterpriseam.com\/egypt\/category\/the-big-story-today\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2026\/3\/1417.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":633662,"url":"https:\/\/enterpriseam.com\/egypt\/2024\/07\/18\/fertilizer-producers-are-pushing-to-almost-double-the-price-of-subsidized-fertilizers\/","url_meta":{"origin":672492,"position":2},"title":"Fertilizer producers are pushing to almost double the price of subsidized fertilizers","author":"enterpriseam admin","date":"18 July 2024","format":false,"excerpt":"The government last hiked the price of subsidized fertilizers in November 2021","rel":"","context":"In "Manufacturing"","block_context":{"text":"Manufacturing","link":"https:\/\/enterpriseam.com\/egypt\/category\/industries\/manufacturing\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2024\/7\/1415.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":687300,"url":"https:\/\/enterpriseam.com\/egypt\/2026\/03\/10\/hormuz-strait-closure-leaves-gap-in-global-fertilizer-market-and-also-cuts-off-the-gas-we-need-to-fill-it\/","url_meta":{"origin":672492,"position":3},"title":"Hormuz Strait closure leaves gap in global fertilizer market \u2014 and also cuts off the gas we need to fill it","author":"enterpriseam admin","date":"10 March 2026","format":false,"excerpt":"Egypt already producing 7-8 mn tons of nitrogenous fertilizers each year, of which 40-50% is exported","rel":"","context":"In "Commodities"","block_context":{"text":"Commodities","link":"https:\/\/enterpriseam.com\/egypt\/category\/industries\/commodities\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2026\/3\/467.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":552288,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/08\/24\/african-food-security-is-coming-under-further-pressure-from-surging-fertilizer-prices\/","url_meta":{"origin":672492,"position":4},"title":"African food security is coming under further pressure from surging fertilizer prices","author":"enterpriseam admin","date":"24 August 2022","format":false,"excerpt":"The sky-high cost of fertilizer is pushing farmers to the brink and further straining African food security: Fertilizer prices have increased by at least 30% since the start of 2022, besides another 80% surge registered last year, according to World Bank figures. These rising prices pose significant challenges for food\u2026","rel":"","context":"In "FOOD SECURITY"","block_context":{"text":"FOOD SECURITY","link":"https:\/\/enterpriseam.com\/egypt\/category\/food-security\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2022\/8\/587.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":549367,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/09\/14\/nitro-fertilizer-producers-will-now-pay-more-for-gas\/","url_meta":{"origin":672492,"position":5},"title":"Nitro fertilizer producers will now pay more for gas","author":"enterpriseam admin","date":"14 September 2022","format":false,"excerpt":"Producers of nitrogen fertilizers could see their natural gas bills rise following a government decision to link them to the price of urea fertilizer.What\u2019s going on exactly? 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