European Union may remove duties on ammonia and carbamide imports

Ministers of Agriculture of the European Union are discussing the possibilities to eliminate the shortage of fertilizers in their countries. Among the proposed measures, they consider the European Commission’s initiative to remove customs duties on imports of ammonia and carbamide to help local producers of nitrogen fertilizers to reduce rapidly rising prices for them.

Prices for mineral fertilizers in the European Union market have tripled over the past year and it has become difficult for farmers to buy them due to the fall in their exports from Russia — their major supplier. The situation is complicated by a sharp decline in the production of nitrogen fertilizers due to the high cost of the ammonia output due to high prices for natural gas used as a raw material.

According to the statement of the Commissioner for Agriculture of the European Union, Janusz Wojciechowski, the EU countries need to diversify supplies of mineral fertilizers, particularly by purchasing from Canada, which has a large nitrogen fertilizer capacity. At the same time, the representatives of France and Spain are calling for the development of a long-term strategy for the production of mineral fertilizers in the European Union, necessary to ensure the stability of its agriculture.

“Currently, the European Union has a customs duty on the import of ammonia and carbamide at rates of 5.5% and 6.5%, respectively. In 2021, 2.9 million tons of ammonia and 4.7 million tons of carbamide were imported into the EU market, with Russia accounting for 29% of ammonia supplies. Accordingly, the reduction in the supply of ammonia and carbamide from Russia has hurt the chemical industry and agriculture in the European Union,” commented the information and analytical service of Fertilizer Daily.

Source: France-Press