Early 2023, Global Urea Fertilizer Prices Continue to Fall

Materials

Lite

Adi Ahdiat 14/03/2023 15:20 WIB

URL has been copied

Memuat...

According to World Bank data, at the end of February 2023, the benchmark price of urea fertilizer in the global market reached USD 357.5 per ton, or approximately Rp 5.5 million per ton, a 51% decreas

Global Urea Fertilizer Prices (January 2010-February 2023)

A Font Kecil
A Font Sedang
A Font Besar

Access single data

Early 2023, Global Urea Fertilizer Prices Continue to Fall

Want to get more access to Data Stories with a more affordable price? Subscribe.

By subscribing, you join us in presenting quality data.

Get:

Premium Data Stories access
Comfortable reading without ads
Download data in XLS, PDF, and image format
Access to data source information

Basic

~~Rp100.000~~

Rp50.000/month

Professional

~~Rp100.000~~

Rp150.000/month

Institutional For organizations

We accept the following payments:

Some payment methods are still in the process of being activated.

Global Urea Fertilizer Prices (January 2010-February 2023)

Download

Source

A Small Font
A Medium Font
A Bigger Font

This price is 19% cheaper than in January 2023 (month-on-month/mom), and contracted by 51% compared to February 2022 (year-on-year/yoy).

However, even though the price trend has been consistently decreasing since October 2022, the current global price of urea fertilizer is still more expensive than during the early stages of the pandemic, as shown in the graph.

Indonesia's Urea Fertilizer Prices are Cheaper Thanks to Subsidies

In 2023, the Indonesian government has prepared 4.64 million tons of subsidized urea fertilizer, with a highest retail price (HET) of Rp 2,250 per kilogram or Rp 2.25 million per ton, significantly cheaper than the global benchmark price.

The government has allocated tens of trillions of rupiah per year for fertilizer subsidies. However, according to Yeka Hendra Fatika, a member of the Indonesian Ombudsman, the results have not been optimal.

"The budget for subsidized fertilizer is around Rp 33 trillion annually, or around Rp 330 trillion in 10 years, but there is no impact on increased agricultural production," said Yeka in his article titled *Findings and Suggestions of the Ombudsman for the Improvement of Subsidized Fertilizer Governance* on the official Ombudsman RI website (21/2/2023).

According to the Ombudsman's study, there are several potential instances of maladministration in the distribution of subsidized fertilizer in Indonesia, such as the lack of detail in the criteria for subsidized fertilizer recipients, inaccurate data on recipient farmers, issues with transparency in the appointment of official distributors, and ineffective supervision.

The Indonesian Ombudsman recommends that the government evaluate the fertilizer subsidy mechanism at all stages.

"Nevertheless, this fertilizer subsidy policy is a form of government presence in assisting farmers, where fertilizer is one of the cost components in farming," said Yeka.

"It is crucial to optimize the distribution of subsidized fertilizer to farmers, so that it can encourage optimal agricultural yields, maintain food security, and improve the welfare of Indonesian farmers," he continued.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."