Russian producers will keep fertilizer prices freezed until the end of 2021
The largest Russian producers of mineral fertilizers decided to extend the fixation of prices for their products until December 31, 2021. These measures will help farmers to get better prepared for spring field works amid sharp changes in the price environment in world markets.
“Even though it’s only the beginning of October, Russian farmers have already acquired over 90% of the needed volume of mineral fertilizers for this year. The annual demand of the Russian agro-industrial complex in fertilizers will be fully met. Therefore it can be considered that producers of mineral fertilizers have completed the tasks for autumn fieldwork and their obligations to support Russian farmers during this period,” said the President of the Russian Fertilizer Producers Association (RFPA) Andrey Guryev. “At the same time, to avoid peak demand, many farmers have already begun to prepare for the spring season and purchase nitrogen fertilizers in advance. A significant share of purchases shifted from spring to autumn. Because of this, the demand for ammonium nitrate in some regions, the main fertilizer for spring sowing, has already grown or will sharply increase soon. The largest fertilizer producers support the turn of the agro-industrial complex towards advance purchases and are extending the freeze of prices for mineral fertilizers until the end of the year. It will be easier for farmers to make purchasing decisions, and for producers to recognize the growing needs of farmers in terms of production and avoid bottlenecks associated with an increase in seasonal demand.”
In the mid-July – early-August period of 2021, the largest producers of mineral fertilizers froze prices and introduced discounts for their products until the end of the autumn fieldwork. This was the voluntary decision of producers to support farmers, taking into account the changing macroeconomic situation associated with the consequences of the pandemic and natural disasters in some Russian regions.