Egypt has introduced a temporary $90-per-ton export tax on nitrogen fertilizers, effective May 5, as governments worldwide scramble to secure domestic agricultural inputs amid deepening supply disruptions linked to instability in the Middle East.
Egypt Moves to Shield Domestic Supply
The three-month levy, announced in Egypt’s Official Gazette and approved by the Cabinet, applies to all types of nitrogenous fertilizer exports, according to the country’s Ministry of Investment and Trade. The decision aims to prevent excessive export flows at a time when global fertilizer prices are surging, while stabilizing costs for Egyptian farmers and ensuring local supply security.
Egypt is a major fertilizer-producing nation that had targeted over $11 billion in chemical and fertilizer exports by end of 2025. The new tax marks a shift toward protectionism as Cairo weighs domestic food security against export revenues.
International Coalition Takes Shape in Rome
The Egyptian move came days before Italy and Croatia, holding the MED9 presidency, launched the Rome Coalition for Fertilizer Access and Food Security on Thursday. The initiative brought together nearly 40 countries and international organizations to address supply disruptions tied to instability around the Strait of Hormuz.
FAO Director-General QU Dongyu warned at the Rome ministerial meeting that fertilizer scarcity caused by Strait of Hormuz disruptions “will lead to lower yields and tightening food supplies in the latter half of 2026 and into 2027”. Participants called for supply chain diversification, better logistics connectivity, and increased investment in resilient agri-food systems.
Italian Foreign Minister Antonio Tajani said the coalition reflects “growing concern over the impact of disruptions in strategic maritime routes”.
Food Prices Hit Three-Year High
The policy responses come as global food costs continue to climb. The FAO Food Price Index averaged 130.7 points in April 2026, up 1.6 percent from March, marking a third consecutive monthly increase and reaching its highest level in more than three years, according to Reuters. Vegetable oil prices were particularly elevated due to disruptions linked to the conflict involving Iran.
The March data had already shown prices rising across all commodity groups — cereals, meat, dairy, vegetable oils, and sugar — driven by higher energy prices linked to conflict escalation in the Near East. International wheat prices rose 4.3 percent in March partly on expectations of higher fertilizer costs affecting planting decisions.
The convergence of export restrictions, coalition-building, and rising food prices underscores how Middle East instability is rippling through global agricultural markets, with fertilizer access emerging as a central vulnerability.
