Federal Agriculture Minister Alois Rainer (CSU) has warned that rising fertilizer costs-driven by the conflict with Iran-could soon push up food prices and further strain consumers. He told newspapers of the Bavarian media group that the government is taking the situation very seriously and plans to act early to counteract the impact.
Rainer is calling for a temporary suspension of import tariffs on fertilizers. “Therefore I support the EU Commission’s initiative to suspend tariffs on fertilizer imports for a limited time” he said. “Because fertilizer prices are largely set on the global market, it is crucial to use the available political levers consistently”. The proposed suspension would take effect on 1 May and would initially last for one year.
According to the Agriculture Ministry, the war in Iran is sharply driving up prices for nitrogen fertilizers. Key price drivers include higher energy costs and the blockade of the Strait of Hormuz, both of which are affecting fertilizer markets worldwide.
The ministry estimates that roughly 60 - 80 % of farmers have already secured their seasonal need for nitrogen fertilizer. Of the quantity already traded, about 70 - 80 % is physically stored on farms, while the remaining 20 - 30 % remains in trading and depot warehouses and will be gradually withdrawn. Coverage levels vary across regions.