Due to the closure of the Strait of Hormuz, there is now a fear of severe shortage of fertilizer in the whole world. Experts have warned that 30 percent of the world’s fertilizer is stuck in this route, due to which the prices of food items may increase significantly in the future. According to the report of Al Jazeera, this crisis is no longer just for the Gulf countries but has become a big problem for the entire world. It is a matter of relief that only some specific countries including India have been allowed to take their ships through this route.
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What will be the impact on farming and prices due to stoppage of fertilizer supply?
The Strait of Hormuz is the world’s largest sea route to transport essential raw materials such as urea and ammonia. Big fertilizer producing countries like Saudi Arabia, Qatar and UAE use this route to send goods around the world. Due to the closure of this route, farmers all over the world are facing difficulty in getting fertilizers on time.
Urea prices have increased by about 30 percent so far. The price of ammonia has now crossed the figure of $ 900 per tonne. In countries like Brazil, which import 80 percent of their fertilizer requirement from outside, the farming crisis has deepened. Work has been affected due to shortage of gas in some fertilizer manufacturing factories in India, Bangladesh and Pakistan.
Iran’s latest decision and which countries got relief?
Iran’s Foreign Minister Abbas Aragchi has clarified that this route has been closed only for their enemy countries. Iran has given special permission to the ships of some of its friendly countries to pass through there. According to the Gulf Cooperation Council (GCC), Iran is also charging fees in exchange for safe passage. Important information amid this crisis is given in the table below.
Special information Main updates Exempt countries India, China, Russia, Iraq and Pakistan Trapped manure 30 to 35 percent of the world’s total marine manure America’s stance President Trump has asked Iran to come to the negotiating table UN report UNCTAD has warned of grain shortage around the world
US President Donald Trump has warned that rising fertilizer prices are adversely affecting American farmers and Iran will soon have to talk seriously on this issue. On the other hand, tension has increased further after the killing of an Iranian commander in an Israeli attack. At present, many big countries of the world are appealing to Iran to follow international rules and open the sea route.