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EU looks to tackle fertiliser price spike due to Iran war
Strasbourg, France, May 19 (AFP) May 19, 2026
The European Union will release emergency funds to help farmers deal with soaring fertiliser costs caused by the Iran war, under plans to support the sector to be unveiled Tuesday.

Brussels has been under pressure to take action to blunt the impact of the Middle East crisis on agriculture, as the spike in fertiliser prices risks pushing up food costs across the bloc.

"European farmers are facing the wall and can't wait any longer!" said the agriculture lobbying group Copa-Cogeca, which organised a small protest outside the European Parliament in Strasbourg, where the EU plan is to be presented.

About a third of fertilisers shipped by sea reach the global market through the Strait of Hormuz, which has been effectively closed by the US-Israeli war against Iran.

That sent prices up and the World Trade Organization (WTO) has warned that the blockade threatens global food security, particularly in Africa and South Asia.

In Europe, the price of nitrogen fertilisers, which are derived from gas, has risen to about 500 euros ($581) a tonne from 380 euros last winter.

It was a one-two punch for farmers already facing higher costs because of the war in Ukraine.

Brussels has imposed high tariffs on fertilisers from Russia, a major producer, and plans to end imports entirely by 2028 in a bid to hit Moscow's war coffers over its war against Ukraine.

Cereal producers, who need vast amounts of fertiliser, have been hit particularly hard, according to the industry.

As a first measure, EU agriculture commissioner Christophe Hansen told French media that Brussels would disburse what is left in the bloc's agriculture crisis reserve, around 200 million euros.

The European Commission is also looking to diversify supply sources and increase local production.

It could relax rules to allow farmers to make more use of digestate, a nitrogen-rich byproduct of biogas, in a move that has environmental groups worried over water pollution concerns.

But Brussels has ruled out a pause in the application of the EU's carbon border tax on fertilisers.

Supporters point out that the levy targets carbon-intensive imports to level the playing field for European industries subject to strict emissions rules, noting their development is key if Europe wants to avoid a similar crisis in the future.


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