Secured 88% of fertilizer supply for the first half of next year... 80% of price increase to 'support farmers'

Unsecured Quantities Also Secured by February Next Year
Raw Material Purchase Costs for Manufacturers Also 'Interest-Free'

On the morning of the 11th of last month, a Nonghyup official checks the stock of urea fertilizer at the Jinjam Nonghyup headquarters in Wonnae-dong, Yuseong-gu, Daejeon. (Image source=Yonhap News)

[Sejong=Asia Economy Reporter Moon Chaeseok] The Ministry of Agriculture, Food and Rural Affairs announced on the 21st that the required amount of mineral fertilizer raw materials for the first half of next year is 849,000 tons (t), and 745,000 tons (88%) have already been secured, ensuring that mineral fertilizers can be supplied without disruption during next year's farming season.

To prevent the increased burden on farmers due to the rise in the price of urea, a mineral fertilizer raw material, 80% of the price increase for mineral fertilizers next year will be subsidized. Fertilizer manufacturers will be provided with 600 billion KRW in interest-free loans for purchasing mineral fertilizer raw materials.

Besides the secured 88%, the government plans to secure the remaining 104,000 tons of unprocured materials such as ammonium phosphate and potassium chloride before February next year through joint purchases by NongHyup and the Fertilizer Association within this month. The government, local governments, and NongHyup plan to subsidize 80% of the mineral fertilizer price increase next year.

However, to prevent an increase in mineral fertilizer usage, price subsidies will only apply to quantities up to 95% of the average mineral fertilizer purchase volume per farmer over the past three years.

To ease the burden on manufacturers caused by the rise in urea prices, the scale of loans for purchasing mineral fertilizer raw materials will be expanded from the existing 200 billion KRW to 600 billion KRW, and the loan interest rate will be reduced from 3% to interest-free. To diversify import sources beyond China (Middle East, Southeast Asia, etc.), tariffs will be lowered from 2% to 0%.

Kim Jong-gu, Director of Agricultural Life Policy at the Ministry of Agriculture, Food and Rural Affairs, said, "With this measure, there will be no disruption in fertilizer supply next year," and urged, "For the preservation of the agricultural environment, please use an appropriate amount of fertilizer through soil testing or confirmation of standard fertilization rates."

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