{"id":18355,"date":"2024-10-30T15:46:23","date_gmt":"2024-10-30T13:46:23","guid":{"rendered":"https:\/\/zawia3.com\/?p=18355"},"modified":"2026-10-08T23:09:27","modified_gmt":"2026-10-08T21:09:27","slug":"farmers-leave-farming","status":"publish","type":"post","link":"https:\/\/zawia3.com\/en\/farmers-leave-farming\/","title":{"rendered":"Between Rising Fertiliser and Seed Prices&#8230; Why Are Farmers Silently Leaving the Land?"},"content":{"rendered":"<p>A few metres from a plot of farmland he inherited from his father, <strong>Hammam El-Sayed<\/strong> stood wondering whether it was worth continuing, given the inflated costs of all kinds of cultivation in recent years, whether fertiliser prices, irrigation water or even seeds, and the gradual decline of government support until it almost vanished, which weighs on the farmer and places him before burdens he cannot bear, amid other increases in the prices of electricity, transport, food, medicine and other necessities of life.<\/p>\n<p>Hammam, a man in his sixties from Sohag Governorate in southern Egypt, who was covered by the recent decision to stop fertiliser subsidies because of encroachments on farmland, says: &#8220;We grew up loving farming, but the costs of the land have doubled. These constantly rising costs, without regard for the farmer&#8217;s circumstances, the nature of the land and the importance of agriculture, have pushed many people in Upper Egypt away from farming. Fertiliser subsidies may be the last remaining form of government support provided to the Egyptian farmer, and today I and thousands of others face unfair decisions to stop this last subsidy, for reasons we do not understand.&#8221;<\/p>\n<p>He adds: &#8220;I do not deny that I took part of my land to build a house, but that was years ago, and I reconciled with the authorities on this matter years ago. Today I am being punished by having my fertiliser subsidy withheld, and I do not know what the connection is between the two matters, but it is clear that the government is looking for evidence to justify its decision to stop subsidies and finds only old justifications.&#8221;<\/p>\n<blockquote>\n<p>On 13 August, the Ministry of Agriculture and Land Reclamation announced that it had stopped disbursing subsidised fertiliser to about 18,000 beneficiaries because of electricity theft, encroachment on state land and building violations, including 4,095 citizens with agricultural holdings against whom electricity theft reports were filed by the Ministry of Electricity, according to the lists of violators received from the Ministry of Electricity and Renewable Energy for August.<\/p>\n<\/blockquote>\n<p>The ministry added in a <a href=\"https:\/\/cairo.gov.eg\/ar\/Pages\/Latestarticle.aspx?ArtID=10842\">statement<\/a> that it is also coordinating with the Ministry of Supply to cancel the ration subsidies of those who encroach on farmland by building, in addition to taking all legal measures against violators, to preserve the agricultural area, the main source of food in Egypt.<\/p>\n<p>Commenting, the Ministry of Agriculture&#8217;s media adviser <strong>Ahmed Ibrahim<\/strong> explains to Zawia3 that the decision is a temporary suspension for a number of farmers accused of stealing electricity, encroaching on farmland or building on it, and that the court&#8217;s decision on the charges against them is awaited: if they are proven, fertiliser subsidies will be cancelled for them entirely, and if they are acquitted, the ministry will return their shares to them.<\/p>\n<p>He stresses that the decision will not be applied retroactively and will be carried out in coordination with the Ministry of Electricity, which periodically provides the names of violators and electricity thieves to the Ministry of Agriculture, which in turn reviews the names and removes the violators from the lists of subsidised agricultural fertiliser, but the final decision remains dependent on the court ruling, in his words.<\/p>\n<p>The ministry&#8217;s official spokesperson points out that the decision is a &#8220;precautionary&#8221; measure aimed at preventing violators from stealing electricity or encroaching on farmland in any way, stressing that the ministry is keen to provide support only to those who deserve it, with the aim of supporting and developing the agricultural development system. He explained that it is working to achieve justice in the distribution of support, as the illegitimate exploitation of resources affects farmers who abide by the law, and that the ministry will continue monitoring markets and cooperating with the competent authorities to ensure this decision is implemented effectively.<\/p>\n<blockquote>\n<p>However, the decision issued in August was suspended on 13 September, and the <a href=\"https:\/\/ahlmasrnews.com\/news\/egypt-news\/13327623\/%D8%A7%D9%84%D8%B2%D8%B1%D8%A7%D8%B9%D8%A9-%D8%A5%D9%84%D8%BA%D8%A7%D8%A1-%D8%AF%D8%B9%D9%85-%D8%A7%D9%84%D8%A3%D8%B3%D9%85%D8%AF%D8%A9-%D8%AD%D9%8A%D8%A7%D9%84-%D8%B3%D8%A7%D8%B1%D9%82%D9%8A-%D8%A7%D9%84%D9%83%D9%87%D8%B1%D8%A8%D8%A7%D8%A1-%D9%88%D8%A7%D9%84%D9%85%D8%AA%D8%B9%D8%AF%D9%8A%D9%86-%D8%B9%D9%84-%D8%A7%D9%84%D8%A3%D8%B1%D8%A7%D8%B6%D9%8A-%D8%A7%D9%84%D8%B2%D8%B1%D8%A7%D8%B9%D9%8A%D8%A9\">agriculture spokesperson<\/a> said the suspension is temporary, pending the judicial decision on the beneficiaries accused of stealing electricity or encroaching on farmland and state property, and if the charges are proven, the farmers will face a final halt to government support.<\/p>\n<\/blockquote>\n<p><strong>Recommended reading:<\/strong> <a href=\"https:\/\/zawia3.com\/cut-down-trees\/\">Egypt Buries Its Lungs Under Concrete&#8230; The Government Continues to Cut Down Trees<\/a><\/p>\n<div class=\"z3-article-separator\" role=\"separator\" aria-label=\"Section divider\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 140 4269 130\" preserveAspectRatio=\"xMidYMid meet\" aria-hidden=\"true\" focusable=\"false\"><path d=\"M120 211H4149\" fill=\"none\" stroke=\"#7e7e7e\" stroke-width=\"10\"\/><circle cx=\"1718\" cy=\"211\" r=\"56\" fill=\"#fafafa\" stroke=\"#9c9c9c\" stroke-width=\"3\"\/><circle cx=\"1718\" cy=\"202\" r=\"50\" fill=\"#647580\" stroke=\"#4e5962\" stroke-width=\"4\"\/><circle cx=\"1930\" cy=\"211\" r=\"56\" fill=\"#fafafa\" stroke=\"#9c9c9c\" stroke-width=\"3\"\/><circle cx=\"1930\" cy=\"202\" r=\"50\" fill=\"#647580\" stroke=\"#4e5962\" stroke-width=\"4\"\/><circle cx=\"2142\" cy=\"211\" r=\"56\" fill=\"#fafafa\" stroke=\"#9c9c9c\" stroke-width=\"3\"\/><circle cx=\"2142\" cy=\"202\" r=\"50\" fill=\"#647580\" stroke=\"#4e5962\" stroke-width=\"4\"\/><circle cx=\"2354\" cy=\"211\" r=\"56\" fill=\"#fafafa\" stroke=\"#9c9c9c\" stroke-width=\"3\"\/><circle cx=\"2354\" cy=\"202\" r=\"50\" fill=\"#647580\" stroke=\"#4e5962\" stroke-width=\"4\"\/><circle cx=\"2566\" cy=\"211\" r=\"56\" fill=\"#fafafa\" stroke=\"#9c9c9c\" stroke-width=\"3\"\/><circle cx=\"2566\" cy=\"202\" r=\"50\" fill=\"#647580\" stroke=\"#4e5962\" stroke-width=\"4\"\/><\/svg><\/div>\n<h3>The Importance of Fertiliser Subsidies<\/h3>\n<p>The government <a href=\"https:\/\/meae.journals.ekb.eg\/article_136458.html\">provides<\/a> support to farmers through cooperative societies and the Agricultural Bank, which distribute subsidised production inputs, and smallholder farmers benefit from in-kind loans, especially fertilisers, which help them produce crops and meet the needs of the local market at prices affordable for citizens.<\/p>\n<p>The state <a href=\"https:\/\/www.ipipotash.org\/uploads\/udocs\/Country%20Report%20on%20Egyptian%20Agriculture.pdf\">began<\/a> subsidising agricultural fertilisers decades ago, as part of its efforts to stimulate agricultural production and ensure price stability. In the 1960s and 1970s, the authorities recognised the importance of agriculture as a vital sector of the Egyptian economy, so they invested heavily in supporting farmers and providing basic agricultural inputs at low prices. Fertilisers were provided in large quantities, with the aim of achieving self-sufficiency in basic crops such as wheat and rice.<\/p>\n<p>Over time, subsidy policies developed to include multiple types of chemical fertilisers, such as nitrogen and phosphate fertilisers, and support was linked to providing distribution and logistics centres to ensure fertilisers reached farmers in various regions. In the 1990s, with economic liberalisation, the government began to reassess subsidy policies, and with growing financial pressures, subsidies were gradually reduced, but they remained an essential part of the government&#8217;s strategies to maintain stable food prices.<\/p>\n<blockquote>\n<p><a href=\"https:\/\/www.capmas.gov.eg\/Pages\/Publications.aspx?page_id=5104&amp;Year=23551\">Fertilisers<\/a> account for the highest share of agricultural inputs, about 32% of total plant production costs in 2021\/2022. Agriculture in Egypt relies 97% on chemical fertilisers, whose prices rose by the equivalent of 564% in the period from 2015\/2016 to 2020\/2021, in line with rising production and energy costs, according to the Alternative Policy Solutions <a href=\"https:\/\/aps.aucegypt.edu\/ar\/articles\/1410\/decline-in-fertilizer-subsidies-threatens-food-security\">centre<\/a>. The rise in input costs is directly reflected in crop prices and citizens&#8217; ability to obtain food, especially with inflation that <a href=\"https:\/\/www.capmas.gov.eg\/Pages\/Publications.aspx?page_id=5107&amp;Year=23352\">reached<\/a> 73.6% in September 2023 compared with the previous year.<\/p>\n<\/blockquote>\n<p>Despite the importance of fertilisers, their share of the value of in-kind loans provided to farmers has declined over the past ten years, and the government&#8217;s retreat from supporting these strategic inputs and leaving them to the fluctuations of the free market threatens further price increases.<\/p>\n<p>In recent years, fertiliser production costs have risen because of higher natural gas prices, which has affected the government&#8217;s ability to continue providing subsidies. This prompted it to study alternative options, including abolishing subsidies in light of current economic challenges. Although subsidies have played a vital role in boosting agricultural production, the state&#8217;s financial situation can no longer bear this burden, which has made abolishing subsidies a pressing issue.<\/p>\n<blockquote>\n<p><a href=\"https:\/\/aps.aucegypt.edu\/ar\/articles\/1410\/decline-in-fertilizer-subsidies-threatens-food-security\">Reports<\/a> have repeatedly spoken of the government&#8217;s intention to abolish support for farmers entirely as part of a plan to reduce spending on the agricultural sector in the general budget, especially with the rising costs of producing fertilisers, which depend mainly on petroleum derivatives and materials imported with foreign currency, which the government also has a crisis providing. The latest of these reports was last June, coinciding with the shutdown of some plants that could not continue operating because of a gas shortage, and after a wave of controversy the government denied issuing such a decision.<\/p>\n<\/blockquote>\n<p>A <a href=\"https:\/\/sis.gov.eg\/Story\/274669\/%D8%A7%D9%84%D8%AD%D9%83%D9%88%D9%85%D8%A9-%D8%AA%D9%86%D9%81%D9%89--%D8%A5%D8%B5%D8%AF%D8%A7%D8%B1-%D9%82%D8%B1%D8%A7%D8%B1-%D8%A8%D8%B1%D9%81%D8%B9-%D8%A7%D9%84%D8%AF%D8%B9%D9%85-%D8%B9%D9%86-%D8%A7%D9%84%D8%A3%D8%B3%D9%85%D8%AF%D8%A9-%D8%A7%D9%84%D8%B2%D8%B1%D8%A7%D8%B9%D9%8A%D8%A9-%D8%A8%D8%AF%D8%A1%D8%A7%D9%8B-%D9%85%D9%86-%D8%A7%D9%84%D9%85%D9%88%D8%B3%D9%85-%D8%A7%D9%84%D8%B2%D8%B1%D8%A7%D8%B9%D9%8A-%D8%A7%D9%84%D9%85%D9%82%D8%A8%D9%84?lang=ar\">statement<\/a> by the Cabinet&#8217;s media centre at the time explained that &#8220;there is no truth to lifting subsidies on agricultural fertilisers from the next agricultural season, and no decisions have been issued in this regard. The cost of fertiliser subsidies for farmers reaches about EGP 30 billion a year,&#8221; pointing to efforts to automate the subsidised fertiliser distribution system through an electronic monitoring mechanism, from their departure from the factories, through agricultural cooperatives, to small farmers and producers, via the &#8220;farmer card&#8221; system.<\/p>\n<p>Head of the Farmers&#8217; Syndicate <strong>Hussein Abu Saddam<\/strong> tells us that stopping government fertiliser subsidies would double the agricultural crisis in the country, and consequently lead to repeated increases in food prices. He noted that there is no connection between violations a farmer may commit, whether stealing electricity or encroaching on farmland, and the abolition of subsidies, and the two matters must be separated and anyone who commits such violations punished according to the law, without affecting their share of fertiliser subsidies, so that the land and the agricultural system as a whole are not harmed by these decisions.<\/p>\n<p>He adds that &#8220;the aim of supporting farmers is to improve the agricultural process and develop the agricultural sector, not to support the farmer himself, so it is better to punish violators in another way. The government previously decided to cancel ration subsidies for citizens who steal electricity, and this can be accepted since ration subsidies relate to the individual and do not affect an integrated system like fertiliser subsidies, which will negatively affect farmland.&#8221;<\/p>\n<blockquote>\n<p>According to Abu Saddam, Egypt&#8217;s agricultural sector receives about four million tonnes of fertilisers annually, divided between two seasons (summer and winter), while a farmer receives (three to six sacks of fertiliser) per feddan during the season. Its subsidised price is about EGP 250, while its unsubsidised price ranges between EGP 950 and 1,000. He noted that a farmer, with this share, may need one or two additional sacks, which he buys, but it is difficult to buy the full quantity from the private sector, because in that case costs would exceed several times the value of what the land produces annually.<\/p>\n<\/blockquote>\n<p>A farmer&#8217;s need for fertiliser varies, according to the head of the Farmers&#8217; Syndicate, depending on the type of farmland: there is strong land that does not need large quantities of fertiliser, while there are weak types of soil that need specific fertilisers in large quantities, so abolishing fertiliser subsidies represents a great burden on farmers.<\/p>\n<p><strong>Zawia3<\/strong> spoke to farmers from Minya Governorate, who said that the government&#8217;s decision to abolish agricultural fertiliser subsidies, should the pending cases be decided, would kill Egypt&#8217;s struggling agricultural system, noting that fertilisers are an essential part of production costs that could obstruct the whole system if farmers are put in front of the train of rising prices and left to the greed of traders.<\/p>\n<p>They add: &#8220;Fertiliser is essential for improving crop productivity and ensuring the quality of the food we supply to the market. With fertiliser prices rising after the abolition, the farmer finds himself facing the monster of exorbitant fertiliser prices, with no availability or alternatives, especially as production costs have become extremely high. This means we may have to reduce the cultivated area or even consider growing less profitable crops. We live in rural villages on agriculture, and any decline in production will lead to food shortages and higher prices. Citizens, especially the poor, will be the first to be affected, as the prices of basic goods will rise markedly,&#8221; calling for soft loans or training programmes to improve farming methods instead of abolishing subsidies.<\/p>\n<p><strong>Bilal<\/strong>, a farmer from Sharqia Governorate, believes the decision will affect them negatively, because they will be forced to give up some crops that need fertilisers, such as wheat, which will affect its production volumes and consequently raise its prices considerably, and the crop crisis and rising food prices will multiply.<\/p>\n<p>He continues: &#8220;We want the government to review its decisions and truly support the agricultural system, because Egypt is essentially an agricultural country, and we are supposed to achieve self-sufficiency in some crops such as wheat, maize, vegetables and some fruits, and expand exports; but what is happening today is placing obstacles in front of the farmer that may force him to leave farming and turn to other work.&#8221;<\/p>\n<p><strong>Recommended reading:<\/strong> <a href=\"https:\/\/zawia3.com\/in-kind-support\/\">Fears of Abolishing In-Kind Subsidies&#8230; What Awaits Poor Families in Egypt?<\/a><\/p>\n<div class=\"z3-article-separator\" role=\"separator\" aria-label=\"Section divider\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 140 4269 130\" preserveAspectRatio=\"xMidYMid meet\" aria-hidden=\"true\" focusable=\"false\"><path d=\"M120 211H4149\" fill=\"none\" stroke=\"#7e7e7e\" stroke-width=\"10\"\/><circle cx=\"1718\" cy=\"211\" r=\"56\" fill=\"#fafafa\" stroke=\"#9c9c9c\" stroke-width=\"3\"\/><circle cx=\"1718\" cy=\"202\" r=\"50\" fill=\"#647580\" stroke=\"#4e5962\" stroke-width=\"4\"\/><circle cx=\"1930\" cy=\"211\" r=\"56\" fill=\"#fafafa\" stroke=\"#9c9c9c\" stroke-width=\"3\"\/><circle cx=\"1930\" cy=\"202\" r=\"50\" fill=\"#647580\" stroke=\"#4e5962\" stroke-width=\"4\"\/><circle cx=\"2142\" cy=\"211\" r=\"56\" fill=\"#fafafa\" stroke=\"#9c9c9c\" stroke-width=\"3\"\/><circle cx=\"2142\" cy=\"202\" r=\"50\" fill=\"#647580\" stroke=\"#4e5962\" stroke-width=\"4\"\/><circle cx=\"2354\" cy=\"211\" r=\"56\" fill=\"#fafafa\" stroke=\"#9c9c9c\" stroke-width=\"3\"\/><circle cx=\"2354\" cy=\"202\" r=\"50\" fill=\"#647580\" stroke=\"#4e5962\" stroke-width=\"4\"\/><circle cx=\"2566\" cy=\"211\" r=\"56\" fill=\"#fafafa\" stroke=\"#9c9c9c\" stroke-width=\"3\"\/><circle cx=\"2566\" cy=\"202\" r=\"50\" fill=\"#647580\" stroke=\"#4e5962\" stroke-width=\"4\"\/><\/svg><\/div>\n<h3>A Government Drive to Abolish Subsidies<\/h3>\n<p>According to human rights lawyer and head of the Egyptian Center for Economic and Social Rights Malek Adly, the recent decisions are linked to the authorities&#8217; drive to reduce their role in the subsidy file in general, which calls for pausing to consider the consequences of these policies, &#8220;because we are not talking here only about farmers, but about the way the authorities deal with the subsidy file, which is one of the main pillars of the Egyptian economy and reflects the suffering of millions.&#8221;<\/p>\n<p>He tells us: &#8220;When we talk about subsidies in the agricultural and industrial sectors, we find that they were linked to a strategic vision aimed at boosting growth, improving the quality of products, expanding the work of these sectors and helping those in agricultural and industrial professions to expand their activity, which benefits citizens, who can obtain a good product at a reasonable price. Subsidies are not merely financial help, but a way to strengthen economic and social stability: when the state supports a farmer, it contributes to developing his activity and increasing his productivity, which helps him improve the quality of agricultural products and strengthens his ability to compete in the market.&#8221;<\/p>\n<p>He stresses that lifting subsidies from farmers essentially reflects the authorities&#8217; desire to wash their hands completely of the subsidy file. This is of course happening because of the stifling economic crisis the country is experiencing and its commitment to the International Monetary Fund to implement a strict policy of reducing subsidies to citizens; &#8220;but the decision may lead to dire consequences for the agricultural sector, as the rise in the prices of fertilisers and basic materials will leave farmers unable to continue producing food at reasonable prices, which will directly affect the food system and the basic goods people can buy for Egyptians&#8217; tables, amid successive rises in food prices.&#8221; He noted that in the past the authorities supported fertilisers and the plants that produce them, but the current authorities also seem to be moving to reduce their support for those plants, which makes matters worse.<\/p>\n<blockquote>\n<p>According to Adly, this is happening as the state moves to sell fertiliser plants to investors, whether domestic or foreign. &#8220;If this trend continues, we will find ourselves facing markets controlled by large companies. In that case, the small farmer will be unable to compete, leading to lower product quality and higher prices on the one hand, and the end of the agricultural sector that depends on small farmers in favour of large companies and foreign investors; consequently, we will be tied to global market prices.&#8221;<\/p>\n<\/blockquote>\n<p>He explains: &#8220;We are witnessing a shift in the government&#8217;s pattern towards the model of the night-watchman state, whose responsibilities are limited to security and the judiciary, while it ignores vital aspects such as supporting agriculture, and the government is expected to wash its hands of all forms of support, whether agriculture, in-kind subsidies, fuel prices or even the loaf of bread. The government has usually marketed justifications for lifting subsidies from citizens over the past years. Despite official claims that the authorities are investing in agriculture, reality indicates that small farmers are the ones who need real support, and lifting subsidies from them reinforces the monopoly of large companies. We must also remember that citizens have no oversight tools over the economic policies that are adopted, which makes them victims of decisions that do not reflect their real needs. We must realise that supporting the farmer is not merely an economic matter, but an investment in the country&#8217;s future and sustainability.&#8221;<\/p>\n<p><strong>Recommended reading:<\/strong> <a href=\"https:\/\/zawia3.com\/inflation\/\">Egypt Is the Most Affected by Food Price Inflation&#8230; Why?<\/a><\/p>\n<div class=\"z3-article-separator\" role=\"separator\" aria-label=\"Section divider\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 140 4269 130\" preserveAspectRatio=\"xMidYMid meet\" aria-hidden=\"true\" focusable=\"false\"><path d=\"M120 211H4149\" fill=\"none\" stroke=\"#7e7e7e\" stroke-width=\"10\"\/><circle cx=\"1718\" cy=\"211\" r=\"56\" fill=\"#fafafa\" stroke=\"#9c9c9c\" stroke-width=\"3\"\/><circle cx=\"1718\" cy=\"202\" r=\"50\" fill=\"#647580\" stroke=\"#4e5962\" stroke-width=\"4\"\/><circle cx=\"1930\" cy=\"211\" r=\"56\" fill=\"#fafafa\" stroke=\"#9c9c9c\" stroke-width=\"3\"\/><circle cx=\"1930\" cy=\"202\" r=\"50\" fill=\"#647580\" stroke=\"#4e5962\" stroke-width=\"4\"\/><circle cx=\"2142\" cy=\"211\" r=\"56\" fill=\"#fafafa\" stroke=\"#9c9c9c\" stroke-width=\"3\"\/><circle cx=\"2142\" cy=\"202\" r=\"50\" fill=\"#647580\" stroke=\"#4e5962\" stroke-width=\"4\"\/><circle cx=\"2354\" cy=\"211\" r=\"56\" fill=\"#fafafa\" stroke=\"#9c9c9c\" stroke-width=\"3\"\/><circle cx=\"2354\" cy=\"202\" r=\"50\" fill=\"#647580\" stroke=\"#4e5962\" stroke-width=\"4\"\/><circle cx=\"2566\" cy=\"211\" r=\"56\" fill=\"#fafafa\" stroke=\"#9c9c9c\" stroke-width=\"3\"\/><circle cx=\"2566\" cy=\"202\" r=\"50\" fill=\"#647580\" stroke=\"#4e5962\" stroke-width=\"4\"\/><\/svg><\/div>\n<h3>The Faltering Fertiliser Industry in Egypt<\/h3>\n<p>Last June, fertiliser plants in Egypt <a href=\"https:\/\/www.skynewsarabia.com\/business\/1724795-%D8%AA%D9%88%D9%82%D9%81-%D9%85%D8%B5%D8%A7%D9%86%D8%B9-%D8%A7%D9%94%D8%B3%D9%85%D8%AF%D8%A9-%D9%85%D8%B5%D8%B1-%D8%A8%D8%B3%D8%A8%D8%A8-%D9%86%D9%82%D8%B5-%D8%A7%D9%95%D9%85%D8%AF%D8%A7%D8%AF%D8%A7%D8%AA-%D8%A7%D9%84%D8%BA%D8%A7%D8%B2-%D8%A7%D9%84%D8%B7%D8%A8%D9%8A%D8%B9%D9%8A\">announced<\/a> that they had temporarily stopped working because of a shortage of natural gas supplies, at a time of increasing energy consumption in the country. In a disclosure to the Egyptian Exchange, Misr Fertilizers Production Company &#8220;MOPCO&#8221; said it had stopped its three plants because gas supplies to the company&#8217;s plants had been halted, Abu Qir Fertilizers announced the shutdown of its three plants, and Sidi Kerir Petrochemicals also announced the shutdown of its plants because of the interruption of feed gases.<\/p>\n<p>The agricultural sector is one of the most prominent economic sectors in the country, <a href=\"https:\/\/www.youm7.com\/story\/2024\/2\/27\/-%D8%AA%D8%B9%D8%B1%D9%81-%D8%B9%D9%84%D9%89-%D8%A3%D9%87%D9%85-%D8%A7%D9%84%D8%AA%D9%81%D8%A7%D8%B5%D9%8A%D9%84-%D8%AD%D9%88%D9%84-%D8%B5%D9%86%D8%A7%D8%B9%D8%A9-%D8%A7%D9%84%D8%A3%D8%B3%D9%85%D8%AF%D8%A9-%D9%81%D9%89-%D9%85%D8%B5%D8%B1\/6493351\">according<\/a> to former Minister of Agriculture El-Sayed El-Quseir, and depends heavily on the availability of high-quality fertilisers to increase soil fertility and improve crop productivity, according to a report by the Egyptian Ministry of Agriculture and Land Reclamation. The fertiliser industry in Egypt includes several types, such as nitrogen, phosphate and potash fertilisers, produced by a group of major plants spread across various regions; however, the industry faces several challenges, including high energy and raw material prices, which affect production costs and raise fertiliser prices in the market.<\/p>\n<p>Egypt&#8217;s fertiliser production in 2023 reached about eight million tonnes of nitrogen fertilisers and four million tonnes of phosphate, and fertilisers rank second among Egyptian exports with a value of USD 3.4 billion, according to former Minister of Public Business <a href=\"https:\/\/www.alarabiya.net\/aswaq\/economy\/2024\/02\/27\/%D9%88%D8%B2%D9%8A%D8%B1-%D9%82%D8%B7%D8%A7%D8%B9-%D8%A7%D9%84%D8%A3%D8%B9%D9%85%D8%A7%D9%84-%D8%A7%D9%86%D8%AA%D8%A7%D8%AC-%D9%85%D8%B5%D8%B1-%D9%85%D9%86-%D8%A7%D9%84%D8%A3%D8%B3%D9%85%D8%AF%D8%A9-%D8%AD%D9%88%D8%A7%D9%84%D9%8A-12-%D9%85%D9%84%D9%8A%D9%88%D9%86-%D8%B7%D9%86-%D9%81%D9%8A-2023\">Sector<\/a> Mahmoud Esmat.<\/p>\n<blockquote>\n<p>Observers believe that the decline in the local availability of subsidised fertilisers comes in the context of the government <a href=\"https:\/\/masr360.net\/2022\/04\/11\/%d8%a7%d8%b3%d8%aa%d8%ad%d9%88%d8%a7%d8%b0-%d8%a7%d9%84%d8%a5%d9%85%d8%a7%d8%b1%d8%a7%d8%aa-%d8%a7%d9%84%d8%a3%d8%b3%d9%85%d8%af%d8%a9-%d8%a7%d9%84%d8%ad%d9%83%d9%88%d9%85%d8%a9-%d8%a7%d9%84%d9%81\/\">selling<\/a> stakes in the largest profitable fertiliser companies to Gulf sovereign funds. The shortfall in fertiliser supplies to the local market, ranging between 5% and 20%, has raised crop prices, and the <a href=\"https:\/\/ourworld.unu.edu\/en\/why-food-should-be-a-commons-not-a-commodity\">privatisation<\/a> of fertiliser companies poses a threat to food security, as the market focuses on maximising profits without regard for food supply needs. The private sector&#8217;s participation in supplying fertilisers to the local market is also weak, not exceeding 20%, while it allocates 76.4% of its production to export. Therefore, the public sector bears 80% of the responsibility for supplying fertilisers to local agriculture.<\/p>\n<\/blockquote>\n<p>The government requires the private sector to direct 55% of its production to subsidised fertilisers and 10% to the local market at a free price, but this obligation has not been applied effectively. As a result, the Ministry of Agriculture recorded a deficit in subsidised fertilisers of up to 1.8 million tonnes in October 2023, according to a Senate <a href=\"https:\/\/gate.ahram.org.eg\/News\/4602944.aspx\">report<\/a>, as only 2.2 million tonnes were supplied out of the four million tonnes required. This decline in the role of the authorities in fertiliser companies, in addition to increasing reliance on the private sector, threatens the state&#8217;s ability to provide food at reasonable prices to its citizens, as seen in the shortage of subsidised fertilisers, which led to a <a href=\"https:\/\/www.masrawy.com\/news\/news_economy\/details\/2023\/1\/29\/2362779\/%D8%A3%D8%B1%D8%A8%D8%A7%D8%AD-%D8%A3%D8%A8%D9%88-%D9%82%D9%8A%D8%B1-%D9%84%D9%84%D8%A3%D8%B3%D9%85%D8%AF%D8%A9-%D8%AA%D9%82%D9%81%D8%B2-%D8%A8%D9%86%D8%B3%D8%A8%D8%A9-126-%D9%81%D9%8A-%D8%A7%D9%84%D9%86%D8%B5%D9%81-%D8%A7%D9%84%D8%A3%D9%88%D9%84-%D9%85%D9%86-%D8%A7%D9%84%D8%B9%D8%A7%D9%85-%D8%A7%D9%84%D9%85%D8%A7%D9%84%D9%8A\">rise<\/a> in prices from EGP 4,500 per tonne in January 2023 to EGP 17,300 on average on the free market.<\/p>\n<p>The Egyptian Constitution obliges the state to protect and develop the agricultural area, as <a href=\"https:\/\/dostour.eg\/2013\/topics\/basic-components\/state-39-2\/\">Article<\/a> (29) of the Constitution stipulates that &#8220;agriculture is a basic component of the national economy. The state shall protect and increase the agricultural area and criminalise encroachment on it, and shall develop the countryside, raise the standard of living of its residents and protect them from environmental risks&#8230;&#8221;. But despite the constitutional text, in reality the government does not abide by this, as it adopts policies that have led to shrinking the agricultural area or threatening small farmers into giving up their farming, in parallel with rising prices. So what else is happening?<\/p>\n<p><strong>Recommended reading:<\/strong> <a href=\"https:\/\/zawia3.com\/fertilizer-gas\/\">Cuts in Gas Supplies Disrupt the Fertiliser Sector and Threaten Egyptian Exports<\/a><\/p>\n<div class=\"z3-article-separator\" role=\"separator\" aria-label=\"Section divider\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 140 4269 130\" preserveAspectRatio=\"xMidYMid meet\" aria-hidden=\"true\" focusable=\"false\"><path d=\"M120 211H4149\" fill=\"none\" stroke=\"#7e7e7e\" stroke-width=\"10\"\/><circle cx=\"1718\" cy=\"211\" r=\"56\" fill=\"#fafafa\" stroke=\"#9c9c9c\" stroke-width=\"3\"\/><circle cx=\"1718\" cy=\"202\" r=\"50\" fill=\"#647580\" stroke=\"#4e5962\" stroke-width=\"4\"\/><circle cx=\"1930\" cy=\"211\" r=\"56\" fill=\"#fafafa\" stroke=\"#9c9c9c\" stroke-width=\"3\"\/><circle cx=\"1930\" cy=\"202\" r=\"50\" fill=\"#647580\" stroke=\"#4e5962\" stroke-width=\"4\"\/><circle cx=\"2142\" cy=\"211\" r=\"56\" fill=\"#fafafa\" stroke=\"#9c9c9c\" stroke-width=\"3\"\/><circle cx=\"2142\" cy=\"202\" r=\"50\" fill=\"#647580\" stroke=\"#4e5962\" stroke-width=\"4\"\/><circle cx=\"2354\" cy=\"211\" r=\"56\" fill=\"#fafafa\" stroke=\"#9c9c9c\" stroke-width=\"3\"\/><circle cx=\"2354\" cy=\"202\" r=\"50\" fill=\"#647580\" stroke=\"#4e5962\" stroke-width=\"4\"\/><circle cx=\"2566\" cy=\"211\" r=\"56\" fill=\"#fafafa\" stroke=\"#9c9c9c\" stroke-width=\"3\"\/><circle cx=\"2566\" cy=\"202\" r=\"50\" fill=\"#647580\" stroke=\"#4e5962\" stroke-width=\"4\"\/><\/svg><\/div>\n<h3>Rising Costs and Shortages<\/h3>\n<p>Egyptians are suffering from a scarcity of potatoes in the local market, with prices rising from EGP 5 to around EGP 25 and 30 per kilo, which may fall at times to about EGP 9-15 depending on the geographical area, given that the export season for this crop officially begins in October every year.<\/p>\n<p>The record rise in the crop&#8217;s prices in a short period and its unavailability in the markets prompted Egyptians to ask about the reasons, drawing comparisons between high potato prices and the prices of mangoes, known for their high prices, which recorded a low value this year.<\/p>\n<p>In research Zawia3 conducted with a number of heads of companies exporting agricultural crops, especially potatoes, to find out the reasons for what is happening, several of them stressed that there is a shortage of the main seed potatoes planted this year, a difference of about 20,000 tonnes of seeds imported with hard currency, which caused a deficit in the product&#8217;s final yield, in addition to rising costs and fertilisers, which are major factors driving up the prices of agricultural crops as a whole, not just potatoes.<\/p>\n<p>In the latest <a href=\"https:\/\/www.youm7.com\/story\/2024\/7\/19\/%D8%A8%D8%B4%D8%A7%D8%A6%D8%B1-%D8%A7%D9%84%D8%AE%D9%8A%D8%B1-%D9%81%D9%8A-2024-%D8%B1%D8%A6%D9%8A%D8%B3-%D8%A7%D9%84%D8%AD%D8%AC%D8%B1-%D8%A7%D9%84%D8%B2%D8%B1%D8%A7%D8%B9%D9%89-%D8%A7%D8%B1%D8%AA%D9%81%D8%A7%D8%B9-%D8%B5%D8%A7%D8%AF%D8%B1%D8%A7%D8%AA-%D8%A7%D9%84%D8%AD%D8%A7%D8%B5%D9%84%D8%A7%D8%AA\/6619884\"><strong>statistics of the Agricultural Quarantine<\/strong><\/a> of the Ministry of Agriculture, total agricultural exports in the period from January to June this year reached about 4.6 million tonnes, compared with 4.1 million tonnes in the same period last year, an increase of 9.5%.<\/p>\n<p><strong>Nasser Abdel Wahab<\/strong>, chairman of El-Safa Agricultural Crops and Export Company, says the most prominent agricultural crops Egypt exports abroad are: &#8220;oranges, onions, potatoes, strawberries, grapes, pomegranates and mangoes&#8221;.<\/p>\n<blockquote>\n<p><a href=\"https:\/\/www.alborsaanews.com\/2024\/07\/10\/1807642\">Egyptian citrus exports<\/a> from the beginning of the year to June 2024 reached about 1.9 million tonnes, compared with 1.8 million tonnes, an increase of 5.5% over last year, as citrus fruits are Egypt&#8217;s leading export crop. 121,321 tonnes of onions were exported, compared with 283,305, a decrease of about 57% from the same period last year, because of the government&#8217;s decision to ban onion exports to supply the local market and help lower prices. <a href=\"https:\/\/www.youm7.com\/story\/2024\/7\/19\/%D8%A8%D8%B4%D8%A7%D8%A6%D8%B1-%D8%A7%D9%84%D8%AE%D9%8A%D8%B1-%D9%81%D9%8A-2024-%D8%B1%D8%A6%D9%8A%D8%B3-%D8%A7%D9%84%D8%AD%D8%AC%D8%B1-%D8%A7%D9%84%D8%B2%D8%B1%D8%A7%D8%B9%D9%89-%D8%A7%D8%B1%D8%AA%D9%81%D8%A7%D8%B9-%D8%B5%D8%A7%D8%AF%D8%B1%D8%A7%D8%AA-%D8%A7%D9%84%D8%AD%D8%A7%D8%B5%D9%84%D8%A7%D8%AA\/6619884\">892,999 tonnes<\/a> of potatoes were exported in the period from January to June 2024, compared with 815,963 in the same period last year, an increase of about 9.9%, according to a report issued by the Agricultural Quarantine.<\/p>\n<\/blockquote>\n<p>Abdel Wahab explains to us that the rise in potato prices this year is the result of the scarcity of seed quantities. He points out that the current season saw a real crisis in prices at home and abroad because of the scarcity of seeds, their high prices and the weak final product this season, as the price of a kilo of potatoes reached EGP 25 in the local market, while a tonne of potatoes for export reached about USD 850.<\/p>\n<p>He continues: &#8220;There is an increase in agricultural exports this year, but the return from them has declined compared with previous years because of &#8216;commission sales&#8217; in foreign markets, which leaves exporters a weak profit margin, as some exporters suffer losses because other Egyptian companies are dumping goods at rock-bottom prices in Gulf and European markets&#8221;, stressing the need to stop potato exports to try to supply the local market so that prices do not rise in the coming period.<\/p>\n<p>He adds that seed imports must be opened to all exporters and quantities increased to prevent monopoly and price rises, and that to increase dollar proceeds, solutions must be found to stop commission sales in the Gulf states and all exporters must be obliged to receive the value of shipments before exporting them abroad, to ensure hard currency enters the country.<\/p>\n<p>In the same context, <strong>Sameh El-Sakhawy<\/strong>, chairman of El-Sakhawy Agricultural Crops Export Company, says the rise in potato prices in the local market is due to several reasons, most notably high costs of fertilisers, pesticides and seeds imported from abroad with foreign currency, and the decrease in the quantities of seeds imported this year compared with last year.<\/p>\n<p>He adds that total imported seed potato quantities last year reached about 138,000 tonnes, compared with 118,000 tonnes this year, a decrease of 20,000 tonnes in imported seeds, from which potatoes are produced all year round for the local and foreign markets, in addition to producing the seeds needed for the winter planting in Egypt.<\/p>\n<p>He points out that all these factors, along with higher costs, lower production and the opening of new markets in some foreign countries, led to a 30% decrease in domestic supply compared with last year, which caused prices to rise along with costs. This imbalance is being witnessed in the markets of all countries, including the European Union, because of climate change, which has reduced crop yields, and consequently the food deficit markets are experiencing today.<\/p>\n<p><strong>Abdel Messih Semaan<\/strong>, professor at the Faculty of Environmental Studies and Research at Ain Shams University, comments: &#8220;Each crop grows according to certain temperatures, and if those temperatures change, especially upwards, the crop&#8217;s productivity declines. For example, wheat productivity falls by 9% if the land temperature rises by two degrees, and by 18% if it rises by three degrees.&#8221;<\/p>\n<p>He adds that other crops are negatively affected by rising temperatures, including by analogy potatoes and other agricultural crops, but the only crop whose productivity increases with rising temperatures is cotton. He sees protected agriculture in greenhouses, which helps control temperatures according to the crop&#8217;s needs and protects it from climate change, as well as developing hybrid seeds that tolerate normal temperatures through genetic engineering to withstand climatic conditions and changes, as solutions. Climate change also poses a great danger to crops, as it can lead to crop damage and the spread of diseases and insects, according to previous warnings by Shaker Abu El-Maaty, professor of climate at the Agricultural Research Center.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Rising fertiliser prices and seed shortages are piling burdens on Egyptian farmers, undermining productive capacity and threatening the country&#8217;s food security.<\/p>\n","protected":false},"author":11,"featured_media":10576,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"footnotes":""},"categories":[413],"tags":[19314,19310,19308,19311,19312,19307,19313,19315,18282,19309],"kateb":[8800,6247],"class_list":["post-18355","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-society-en","tag-agricultural-exports-egypt","tag-agricultural-input-prices","tag-egyptian-farmers","tag-farmer-card-egypt","tag-fertiliser-plants-gas-shortage","tag-fertiliser-subsidies-egypt","tag-food-security-egypt","tag-hussein-abu-saddam","tag-potato-prices-egypt","tag-potato-seed-shortage","kateb-mohamed-abou-zaid","kateb-rasha-ammar"],"jetpack_featured_media_url":"https:\/\/zawia3.com\/wp-content\/uploads\/2024\/09\/\u0641\u0644\u0627\u062d\u064a\u0646-\u0645\u0635\u0631.png","_links":{"self":[{"href":"https:\/\/zawia3.com\/en\/wp-json\/wp\/v2\/posts\/18355","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/zawia3.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/zawia3.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/zawia3.com\/en\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/zawia3.com\/en\/wp-json\/wp\/v2\/comments?post=18355"}],"version-history":[{"count":1,"href":"https:\/\/zawia3.com\/en\/wp-json\/wp\/v2\/posts\/18355\/revisions"}],"predecessor-version":[{"id":18356,"href":"https:\/\/zawia3.com\/en\/wp-json\/wp\/v2\/posts\/18355\/revisions\/18356"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/zawia3.com\/en\/wp-json\/wp\/v2\/media\/10576"}],"wp:attachment":[{"href":"https:\/\/zawia3.com\/en\/wp-json\/wp\/v2\/media?parent=18355"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zawia3.com\/en\/wp-json\/wp\/v2\/categories?post=18355"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zawia3.com\/en\/wp-json\/wp\/v2\/tags?post=18355"},{"taxonomy":"kateb","embeddable":true,"href":"https:\/\/zawia3.com\/en\/wp-json\/wp\/v2\/kateb?post=18355"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}