Fertilisers on the rise LAST week, a ministerial committee decided to raise the price of fertilisers from LE780 to LE1,500 per tonne. The decision came as part of the Ministry of Agriculture's strategy to leave the prices of agricultural inputs and outputs according to supply and demand. This should fight monopoly acts by some traders to control the fertilisers on the market. Farmers have often complained from continuous shortages in fertilisers, particularly in the summer, the season of cultivating many strategic corps which need large amounts of fertilisers. In response to these complaints, a committee was formed bringing together representatives from the ministries of agriculture, social solidarity and trade and industry to discuss the issue of fertilisers. The committee found out that raising the price of fertilisers will help provide this agricultural aid on the market. While officials praised the decision, farmers are not pleased since the cost price will go up once the value of one fertiliser bag doubles from LE37 to LE75. Minister of Agriculture Amin Abaza reassured that the government will continue to subsidise fertilisers for farmers, especially that the international price for fertilisers is LE2,400 per tonne. Abaza added that his ministry is currently reconsidering the most appropriate method of providing subsidies for farmers to encourage them to produce high quality products. Controlling steel prices IN AN ATTEMPT to control steel prices, steel traders announced this week their commitment to sell steel at LE5,150 per tonne. The decision, which came into effect on Saturday, was taken by the Steel Committee which is an affiliate of the Construction Materials Division at the Egyptian Federation of Chambers of Commerce (EFCC). The move was approved by 80 per cent of steel traders to maintain balance in steel markets and also for the benefit of consumers. The committee revealed that a study is underway to investigate the possibility of importing steel to cover shortages in the local markets. It also urged traders to adhere to announcing steel prices on a monthly basis, in order to maintain a level of transparency with consumers. Moreover, the committee recommended that steel factories increase production to maximum capacity to meet the needs of local markets. At the same time, the recommendations continued, traders should not stockpile large quantities of steel to prevent shortages. Steel prices rose quickly in the past six months to reach LE5,300 per tonne from LE3,000 per tonne. Steel producers claimed that the reason behind this price hike is a rise by 30 per cent in the international price of the raw material known as bellets. Heavy duty on rice exports DUE To high jumps in the price of rice, Minister of Trade and Industry Rachid Mohamed Rachid decided to raise export duties on rice exports from LE200 to LE300 per tonne. The decision implemented on 7 March aims at providing more rice on the local market and reduce rice exports. This is in light of international prices going up, causing a price hike on the local market from LE2,400 to LE3,000 per tonne in the past few weeks.
