China has implemented stricter controls on the export of fertilizers [2][3][4][5] as part of broader measures to address supply concerns and domestic price pressures. The Chinese government has asked major urea producers to suspend applications for export certificates, while smaller phosphate producers in some regions have also been requested to halt exports [5].
This move is aimed at making more fertilizers available domestically and lowering high domestic prices, which have surged over the past year due to factors like the Russia-Ukraine war and high global gas prices [4]. The restrictions are expected to have significant implications for countries reliant on Chinese fertilizer exports to sustain their food production, potentially exacerbating food inflation and increasing subsidy expenses for importers like India [4].
The tightening of fertilizer export controls underscores the fragility of the global food supply chain and the interconnected nature of domestic policies and global agricultural dynamics [4]. As the world’s largest producer and consumer of fertilizers, China’s actions are likely to have ripple effects on global crop-nutrient markets and food security [4][5].
Citations:
[1] https://directorstalk.net/palm-oil-rises-on-strong-exports
[2] https://www.devdiscourse.com/article/headlines/2993396-china-tightens-grip-on-fertilizer-exports-amid-supply-concerns
[3] https://twitter.com/ChadBown/status/1520399735210881025
[4] https://www.bloomberg.com/news/newsletters/2023-09-12/china-fertilizer-curbs-show-a-fragile-food-supply-chain
[5] https://www.czapp.com/analyst-insights/china-tightening-restrictions-on-fertiliser-exports-reports/