BAKU, Azerbaijan, August 16. The export ban on fertilizers should be lifted to mitigate the current food crisis globally, Trend reports via the latest food security update from the World Bank (WB).
“The WB fertilizer price index increased by around 15 percent from earlier this year, with prices more than three times as high as 2 years ago. High input costs, supply disruptions, and trade restrictions have been the primary drivers of this drastic price increase,” the report said.
As of early June, 86 countries had 310 active trade measures affecting food and fertilizers, about 40 percent of which were restrictive.
“Furthermore, there has been a general scarcity of local commercial bank financing in many markets, with the financing needs of manufacturers, traders, and importers tripling in some cases”. To address this, mobilizing short-term credit facilities and guarantees is needed.
As the WB suggests, the efficient use of fertilizers is a key, which could be assessed by providing agriculture producers with appropriate amounts of the product, or reintroducing public policies that encourage sustainable use.
“An example of such a policy reform is the European Union’s 1992 Common Agricultural Policy. With the enactment of these reforms, support to the Common Agricultural Policy shifted to direct payments, and farm prices became more closely aligned with world prices, encouraging efficient use,” the report explained.
"Also, to develop practices and knowledge major investments in the sector are required. Precision agriculture is an example of an improved technology that is already available. Fertigation, which allows fertilizers to be used in measured quantities, determined using sensors, is another. Another option is to supplement conventional fertilizers with bio-fertilizers,” the WB added.
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