Fertilizer prices at 50-year high in Vietnam
Fertilizer prices at 50-year high in Vietnam
Following the rise in global fertilizer price, local fertilizer rates have risen VND1,000-1,900 (US$0.04-0.08) per kilogram to hit new highs over the past 50 years, according to the Plant Protection Department under the Ministry of Agriculture and Rural Development.
Last month, the retail prices of fertilizers in the U.S. were on the rise.
The price of diammonium phosphate (DAP) fertilizer registered the biggest rise, at eight percent, to reach $1,047 per metric ton.
It was followed by the prices of urea and monoammonium phosphate (MAP) fertilizers, which rose seven percent and six percent to $1,017 and $1,071 per metric ton, respectively.
Potassium fertilizer cost $875 per metric ton, inching up four percent.
The U.S market also saw a spike in the prices of basal and dry fertilizers.
Meanwhile, the fertilizer price hike in the Mekong Delta last month was the fourth consecutive rise.
The retail price of Chinese-imported DAP fertilizer was VND1.34 million ($58) per 50-kilogram bag or $1.17 per kilogram, while locally-produced DAP fertilizer was priced at VND1.12 million ($49) per bag or $0.97 per kilogram.
Potassium fertilizer cost VND975,000 ($42) per bag or $0.85 per kilogram; and urea fertilizer, VND910,000 ($40) per bag or $0.79 per kilogram.
French Stork NPK, Buffalo Head (Dau Trau) NPK, and Viet Nhat NPK fertilizers were priced at $0.95, $0.96, and $0.83 per kilogram, respectively.
According to the Ministry of Agriculture and Rural Development, fertilizers account for up to half of the production costs and the proportion has been forecast to increase further.
The fertilizer price hike was attributed to the inadequate supply of fertilizers because of the Russia-Ukraine military conflict.
The exclusion of Russia from the Society for Worldwide Interbank Financial Telecommunication (SWIFT) hit Russian exports, including fertilizers.
Additionally, sanctions imposed on Russia by the U.S. and the European Union have affected the global fertilizer market, reducing supply sources and raising prices.
Potassium fertilizers produced by Russia and Belarus make up nearly half of the global volume, and Vietnam entirely depends on potassium fertilizer imports.
To reduce the fertilizer prices, the Ministry of Agriculture and Rural Development recently proposed taxing urea, DAP, and MAP fertilizer exports to back the local fertilizer production and remove difficulties facing farmers.
The ministry also suggested tightening the control over fertilizer exports to ensure domestic supply amid the scarcity of fertilizers.
According to the ministry, Vietnam annually consumes an average of over 10 metric tons of fertilizers.
Last year, the country used 10.7 million metric tons.
It produced 7.2 million metric tons, imported 5.1 metric tons, and exported 1.6 million metric tons.
