Russian farmers' 2025 fertilizer needs covered, deliveries start for spring planting - RFPA

MOSCOW. Dec 19 (Interfax) - Russian farmers have acquired 5.6 million tonnes of mineral fertilizer (in active ingredient) since the beginning of the year, taking into account stockpiles, the Russian Fertilizer Producers Association (RFPA) reported, citing the Agriculture Ministry.

The Russian agriculture sector's mineral fertilizer needs for 2025 - 5.56 million tonnes of active ingredient according to the Agriculture Ministry's plan - have been fully covered and deliveries have already begun for spring field work, the RFPA said in a press release.

Domestic fertilizer consumption broke down into 53% nitrogen, 41% phosphate and 6% potassium fertilizers.

RFPA president Andrei Guryev said companies in the industry still believe it is necessary to index prices for fertilizer shipped to the domestic market.

"A whole range of objective reasons have now developed for indexing maximum prices. Specifically, the price of natural gas - the main raw material for production of the most in-demand nitrogen mineral fertilizers - has risen by a third since October 2022, including after a three-time indexation of prices. The mineral extraction tax rate for potassium and phosphate ore was raised as of January 1, 2025. Taking into account repeated increases of the rates of natural monopolies for gas, electricity and railway transport, the growth of fertilizer production costs in Russia has reached 25% since October 2022, depending on the product," Guryev said in the press release.

"Therefore, indexation of prices remains a pressing issue that directly influences the industry's ability to continue implementing investment programs. There are currently projects worth another 2 trillion rubles in progress," Guryev said.

He also confirmed the forecast that Russian companies will produce 65 million tonnes of fertilizer in 2025 and export 45 million tonnes, up from 63 million tonnes and 42 million tonnes, respectively, in 2024.

The steepest increases in Russian fertilizer exports this year were 40% to India, 31% to Africa and 11% to Brazil.