Possible Increase in Element Fertilizer Prices Next Year... Minister of Agriculture and Food "Discussing with Nonghyup"

On the afternoon of the 8th, at the plenary meeting of the Agriculture, Forestry, Livestock, Food, and Maritime Affairs Committee held at the National Assembly, Kim Hyun-soo, Minister of Agriculture, Food and Rural Affairs, is seen responding to lawmakers' questions regarding the supply situation and measures related to urea fertilizer. (Photo by Yonhap News)

[Sejong=Asia Economy Reporter Moon Chaeseok] Due to the shortage of urea solution caused by China, domestic urea fertilizer prices are expected to rise starting next year.

On the 8th, Kim Hyun-soo, Minister of Agriculture, Food and Rural Affairs, stated at the plenary meeting of the National Assembly's Agriculture, Food, Rural Affairs, Oceans and Fisheries Committee in response to questions from ruling and opposition lawmakers, "The current cost of urea has risen significantly," adding, "We are discussing with Nonghyup the possibility of splitting the annual urea fertilizer price contract, which was previously done once a year."

Nonghyup purchases large quantities of fertilizer from domestic fertilizer companies at the beginning of the year and resells them to farms. The system maintains the fertilizer price set once for the entire year, and an unusual price increase was made once in August this year. The fertilizer industry is demanding that the increase in urea prices be reflected in the unit price during next year's contract. Since production costs have risen, sales prices must be raised accordingly to secure profit margins. Splitting the unit price contract into several parts is interpreted as an effort to more accurately reflect fluctuations in urea costs in fertilizer prices.

However, Minister Kim expressed a cautious stance on increasing the budget at the government level to alleviate farmers' chemical fertilizer cost burdens. He said, "It is expected that farmers' fertilizer-related burdens will increase," but added, "Given the transition from chemical fertilizers to eco-friendly fertilizers, increasing the budget related to chemical fertilizers is indeed difficult." He also stated, "The budget review by the Special Committee on Budget and Accounts is still pending, so we will make a judgment by then and provide opinions if necessary."

This content was produced with the assistance of AI translation services.