Agriculture, Petroleum Ministries Deny Cut to 2.4 Mn-Ton Fertilizer Subsidy Quota

Egypt’s Ministries of Agriculture and Land Reclamation and Petroleum and Mineral Resources have denied reports that the annual quota of subsidized fertilizers supplied to the agricultural sector has been reduced from August.

The ministries said the annual quota remains unchanged at 2.4 million tons and that no decision has been issued to cut or amend the allocated volumes.

The Ministry of Agriculture and Land Reclamation said the Fertilizer Coordination Committee has not held any meetings to discuss reducing or changing the quota. However, it added that fertilizer shipments and deliveries continue according to the approved schedules, with the same allocated volumes for 2026.

The Ministry of Petroleum and Mineral Resources said it continues to secure the natural gas needed by fertilizer plants to maintain production and operating rates. It added that stable gas supplies during 2025 and 2026 supported the industry’s ability to meet domestic demand and maintain exports.

Moreover, the ministries said fertilizer producers continue to receive the required gas volumes, while companies remain committed to supplying the quantities set by the agriculture ministry under the subsidy system. They added that the selling price to farmers remains unchanged.

The statement comes after stronger operating rates across Egypt’s fertilizer industry. In June, Karim Badawi, Minister of Petroleum and Mineral Resources, said fertilizer plants had operated at more than 90% of capacity over the previous year after natural gas supplies stabilized.

At the time, Badawi also mentioned urea fertilizer exports reached about $9.4 billion in 2025, up 7.4% YoY. He said the ministry was working to secure natural gas supplies by increasing investments in exploration, development and production while strengthening infrastructure to receive LNG imports.