Cairo - Mubasher: A decision by the Egyptian cabinet to raise duties in fertilisers exports by 300% was encouraged by constant complaints from farmers, now the government has stepped in to help balance the market and ensure sufficient local supplies.
Financial analyst Ali Afifi told Mubasher that the decision aims at forcing producers to provide the needed quotas to the Agricultural Credit Bank, and that although farmers asked for export duties to be raised to EGP 1,500 per tonne, the government is still looking forward to raise exports.
There is still a huge a gap between local and global prices, he added, noting that with local prices standing at EGP 3,200 per tonne, in global markets the price is equivalent to EGP 5,000, noting that the new duties effect on producers’ profitability should be minimal, with major companies expecting more positive governmental decisions.
