Close
newsletters Newsletters
X Instagram Youtube

Türkiye drops urea tariffs to shield farmers from fertilizer shock

Urea fertilizer being loaded onto a cargo vessel at a port facility. (Adobe Stock Photo)
Photo
BigPhoto
Urea fertilizer being loaded onto a cargo vessel at a port facility. (Adobe Stock Photo)
March 08, 2026 10:25 AM GMT+03:00

Türkiye has eliminated customs duties on urea fertilizer imports to prevent rising costs for farmers and curb potential food price increases after the Iran conflict strained one of the world’s key export hubs, tightening global fertilizer markets.

The decision came as the Trade Ministry said it was monitoring developments in the region and their impact on supply routes, emphasizing the need to maintain fertilizer availability for the agricultural sector.

Iran conflict rattles global urea supply

In a statement released Saturday, the ministry said the measure aims to secure the supply of key agricultural inputs while protecting both producers and consumers from potential market volatility.

Officials added that authorities are working in coordination with the Agriculture and Forestry Ministry and other institutions to closely track domestic and international markets and take necessary measures to safeguard price stability and supply security.

The move follows rising uncertainty in the Middle East after joint U.S.-Israel military strikes against Iran on Feb. 28 and subsequent retaliatory actions by Tehran.

Security risks in the Strait of Hormuz, a key global shipping route, surged after Iran warned ships against passing through the waterway following the escalation, effectively halting most traffic. The Strait accounts for around 35% of global seaborne urea trade, or roughly 20 million tons annually.

As tensions grew, several Gulf producers slowed or halted urea exports while assessing shipping risks in the region. Urea prices subsequently climbed more than 30% to $647.5 per ton as suppliers withdrew offers from the market.

Qatar’s state energy company QatarEnergy, a major urea producer, also announced a temporary suspension of several petrochemical and industrial products, including urea.

A loader moving urea fertilizer inside an industrial storage facility. (Adobe Stock Photo)
A loader moving urea fertilizer inside an industrial storage facility. (Adobe Stock Photo)

Turkish farmers rush to buy fertilizer as prices climb

Rising global prices triggered a surge in fertilizer purchases by farmers in Türkiye over the week as they sought to avoid further cost increases.

Gubretas, the country’s main fertilizer producer, said sales through agricultural cooperatives increased sharply after other sellers slowed or stopped distribution, with daily demand doubling to 20,000 tons from around 10,000 tons.

The Trade Ministry’s latest move is expected to support higher imports and help ease supply pressures in the domestic market, allowing distributors to better balance rising demand from farmers.

According to the Turkish Statistical Institute (TurkStat), Türkiye imported 2.5 million tons of urea in 2025, with a total value of $1 billion.

Oman ranked as the largest supplier, providing 954,092 tons worth $381.77 million and accounting for about 38.1% of imports. Egypt followed with 617,600 tons.

Other Gulf suppliers, Qatar and the United Arab Emirates, collectively accounted for about 135,484 tons, representing 5.4% of Türkiye’s total urea imports.

Fertilizers play a key role in global food production, with about half of all agricultural output depending on them. When supplies are disrupted, crop yields can fall, and food markets can quickly feel the impact.

The current disruption in fertilizer markets could also add pressure to food prices in Türkiye, where inflation has already stayed high. Monthly food inflation exceeded 6% in both January and February, pushing overall inflation to 31.5%. The Producer Price Index for agricultural products also rose 8.5% month on month in January.

March 08, 2026 10:25 AM GMT+03:00
More From Türkiye Today