European Commission is trying to cope with the high cost of fertilizers
The European Commission reported on the plans to counter the rise in prices for mineral fertilizers caused by the high cost of natural gas and dependence on a limited number of suppliers.
According to its statement, despite the availability of mineral fertilizers for European farmers, their cost remains a big issue for them. For example, prices for nitrogen fertilizers in September 2022 were 149% higher than in the same period last year.
Therefore, it’s planned to make amendments to the rules for the provision of state support so that the EU members could provide support to both farmers and mineral fertilizer enterprises.
For example, their government agencies can buy mineral fertilizers on the market and then offer them to farmers at low prices. It’s also planned to use taxes received from electricity companies to help farmers and chemical plants.
The European Commission will also consider using 450 million euros from the European Union reserve funds to provide subsidies to farmers in 2023 and allowing its members to establish priority access to natural gas for mineral fertilizer producers. At the same time, the Commission won’t abolish anti-dumping duties on imports of mineral fertilizers.
Finally, in the 1Q2023, the European Commission should adopt a comprehensive action plan for the use of mineral fertilizers.