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Finance Ministry proposes exempting two fertilizer types from consolidated export duty

It was reported earlier that the calculation of the given export duty did not factor in products' net cost and profitability, which can vary dramatically for different types of fertilizer

MOSCOW, August 17. /TASS/. The Russian Finance Ministry has proposed exempting two types of mineral fertilizer (diammonium hydrogen phosphate and ammonium dihydrogen phosphate) from its draft decree for introducing a consolidated export duty on fertilizers, according to a revised draft document posted on the official portal for legal acts.

Earlier, the Finance Ministry suggested setting a consolidated export duty on all types of fertilizers at the rate of 8% from September 1, 2023 until the end of 2024. One of Russia’s largest producers of fertilizers, PhosAgro, said earlier that the calculation of the export duty under discussion did not factor in the products' net cost and profitability, which can vary dramatically for different types of fertilizer.

A source in the sector told TASS that the Finance Ministry’s revised decree exempts two types of water-soluble fertilizer from the duty due to their high net cost. The proposal was initially suggested to the Industry and Trade Ministry by the largest producer of such fertilizers, Diamond Fertilizers, the source noted, adding that the discussion of the decree is still underway and is planned to be completed on August 22.

Russia introduced an export duty of 23.5% on mineral fertilizers starting January 1 until the end of this year in case the fertilizer price rises above $450 per ton. Supplies below this price are exempt from the duty. The Finance Ministry noted earlier that it was ready to consider the option of adjusting the duty calculation parameters in line with the 1Q 2023 results.

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