Bangkok: The fertilizer situation has shown significant improvement as two transport ships have successfully departed from Hormuz, signaling a potential stabilization in the market. Supajee Suthamphan, Deputy Prime Minister and Minister of Commerce, announced that the resumption of transport has eased the previously strained fertilizer supply chain. She assured that global market prices for urea are beginning to fall and that Thailand's prices will align accordingly without any increase, thanks to government measures.
According to Thai News Agency, Supajee expressed optimism regarding the government's initiatives, such as the "Green Flag Fertilizer" initiative and the forthcoming "Mother Fertilizer, Half Price" project. These efforts are part of Team Thailand's strategy to manage fertilizer supplies amidst ongoing global unrest. Although uncertainties remain due to the prolonged conflict, the government is committed to stabilizing both supply and prices.
The recent departure of two out of five previously stranded fertilizer ships highlights progress in supply chain restoration. Another ship is rerouting via land to the Red Sea, heading towards Thailand, further alleviating supply issues. The Ministry of Commerce has also launched the "Thai Helps Thai" project to distribute green flag fertilizers across 40 provinces, with implementation already underway in six provinces.
Price control measures are actively enforced by the Department of Internal Trade, which has prosecuted over 1,640 sellers for inflating fertilizer prices. Farmers are encouraged to report any exploitation. The government is also planning a co-payment scheme with the Bank for Agriculture and Agricultural Cooperatives (BAAC) to subsidize fertilizer and seed costs, ensuring farmers can access suitable fertilizers to boost yields.
Mr. Thepavit Teosuratkul from the Thai Fertilizer and Agricultural Business Association noted that the global shortage of urea is diminishing, with imports resuming from the Middle East. Saudi manufacturers are adjusting logistics to ensure continuous shipments to Thailand through Red Sea ports.
Price trends indicate a downward adjustment, particularly for nitrogen and urea. While NP and NPK formulations remain stable, domestic prices are expected to decline gradually. Mr. Kong-ek Plengsak Prakasaphesat, President of the Association, assured that negotiations with Iran and Russia have yielded positive results, securing urea supplies without extra charges, thus preventing shortages.
Mr. Witiyakorn Maneenet of the Department of Internal Trade reported a significant price increase in urea compared to pre-war levels, but a clear downward trend is now evident. The department monitors stock levels closely to prevent hoarding and ensure fair pricing.
In related developments, Mr. Suriya Jungrungreangkit, Minister of Agriculture and Cooperatives, is awaiting further discussions with Malaysia regarding shrimp exports and is confident about the current fertilizer supply sufficiency until the end of the planting season.