SCZONE showcases investment opportunities to eight Japanese companies    Egypt urges Israel to accept Gaza deal amid intensifying fighting    Egypt, ADIB explore strategic partnership in digital healthcare, investment    SCZONE, Tokyo Metropolitan Government sign MoU on green hydrogen cooperation    Al-Sisi, Macron reaffirm strategic partnership, coordinate on Gaza crisis    Egypt welcomes international efforts for peace in Ukraine    Contact Reports Strong 1H-2025 on Financing, Insurance Gains    Egypt, India's BDR Group in talks to establish biologics, cancer drug facility    AUC graduates first cohort of film industry business certificate    Egypt to tighten waste rules, cut rice straw fees to curb pollution    Indian tourist arrivals to Egypt jump 18.8% in H1-2025: ministry data    Egyptian pound down vs. US dollar at Monday's close – CBE    Egypt's FM, Palestinian PM visit Rafah crossing to review Gaza aid    Egypt prepares unified stance ahead of COP30 in Brazil    Egypt recovers collection of ancient artefacts from Netherlands    Egypt harvests 315,000 cubic metres of rainwater in Sinai as part of flash flood protection measures    Egypt, Namibia explore closer pharmaceutical cooperation    Fitch Ratings: ASEAN Islamic finance set to surpass $1t by 2026-end    Renowned Egyptian novelist Sonallah Ibrahim dies at 88    Egyptian, Ugandan Presidents open business forum to boost trade    Al-Sisi says any party thinking Egypt will neglect water rights is 'completely mistaken'    Egypt's Sisi warns against unilateral Nile measures, reaffirms Egypt's water security stance    Egypt's Sisi, Uganda's Museveni discuss boosting ties    Egypt, Huawei explore healthcare digital transformation cooperation    Egypt's Sisi, Sudan's Idris discuss strategic ties, stability    Egypt to inaugurate Grand Egyptian Museum on 1 November    Greco-Roman rock-cut tombs unearthed in Egypt's Aswan    Egypt reveals heritage e-training portal    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Working group to resolve fertiliser production problems: Prime Minister
Published in Daily News Egypt on 01 - 10 - 2014

The government has decided to form a working group to solve issues relating to Egypt's fertiliser industry, including solving a fertiliser production shortage and declining amounts of gas supplied to fertiliser plants, Prime Minister Ibrahim Mehleb said.
During a meeting held on Tuesday with the Ministers of Petroleum, Investment, Agriculture, Planning, and Finance, as well as fertiliser company officials, Industry Minister Mounir Fakhry Abdelnour said that the fertiliser industry is facing four main problems. The first issue involves a gas shortage that negatively affects nitrogen fertiliser production, as the failure to provide gas supplies harms production and raises costs.
He said, "The second problem is that a different system exists for the price of gas sales: some companies obtain a definitive price while others received a price based on an equation, which consequently results in unfair competition."
Sherif El-Gabaly, President of the Chamber of Chemical Industries at the Federation of Egyptian Industries (FEI), said, "Many fertiliser plants stopped operating as a result of gas failing to be supplied at the contracted quantities and pressures, which impeded some companies from fulfilling their export agreements. This in turn led to the creation of a black market for nitrogen fertilisers, exerting a negative impact on farmers due to companies not being able to supply fertilisers to agricultural associations that they have contracted with."
According to Abdelnour, the third problem lies in the Ministry of Agriculture's purchase of fertilisers at a price lower than the price of production, which causes fertiliser companies to incur great losses and renders them incapable of maintaining production lines. The fourth problem, he said, "has to do with export restrictions in place in the form of a fee, claiming that the goal is to protect the farmer."
Petroleum Minister Sherif Ismail said that an agreement has been reached to develop specific mechanisms for providing gas to fertiliser plants directly by the Ministry of Petroleum during the meeting that will take place after Eid Al-Adha.
According to El-Gabaly, "Fertiliser companies record losses worth EGP 450 per tonne, as the cost of production increased following the rises in gas prices to EGP 1,900 per tonne, whereas they are supplied to agricultural associations at EGP 1,450 per tonne."
The next crop year, which begins each October, will require 4m metric tonnes of fertiliser, equivalent to 12m tonnes of urea and nitrate fertilisers.
El-Gebaly said gas is a raw material essential for the fertiliser industry and not just a source of energy to operate plants, a fact that makes a lack of gas supplies doubly dangerous.


Clic here to read the story from its source.