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Exporting fertilizers is more profitable than selling to local farmers 24.08.2022 в 15:16 640 просмотров

Kazakh fertilizer producers, instead of supplying the domestic market, continue to export products abroad. According to the monitoring agency Energyprom.kz, this year the export of fertilizers from Kazakhstan has decreased, but profits have increased by 70%, according to World of NAN.

In general, all types of chemical and mineral fertilizers from the Republic of Kazakhstan were exported in the first half of 2022 - 119.1 thousand tons, in the amount of 78.5 million US dollars. In real terms, there was a decline in supplies by 31.7% over the year, but in monetary terms, on the contrary, there was a noticeable increase - by 75.9%.

Obtaining such a profit, it is clearly more profitable for fertilizer producers to export their products, since the state in every possible way prevents an increase in prices in the domestic market. Farmers still remember the scandal when Kazphosphate unreasonably raised prices for fertilizers. After investigations began, and the director changed in the company.

It is worth adding that local companies cannot cover domestic demand. Thus, imports of fertilizers exceeded exports by 3.9 times in physical terms and 1.9 times in monetary terms. Since the beginning of the year, 467.5 thousand tons of fertilizers of all types have been delivered to the Republic of Kazakhstan in the amount of $145.8 million.

At the same time, the price of foreign fertilizers may be higher. And some farmers simply cannot afford to buy them. And without fertilizers, yields are reduced, and there are risks in food security. And for some reason, the government does not resort to its favorite tool - export restrictions. By banning the export of fertilizers from the country, it would be possible to keep the price down and saturate the domestic market.

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