CANBERRA: An Australian company will import 250,000 tonnes of urea fertiliser from Indonesia in the coming months, easing fears of a shortage that would crimp food production, the Australian government said on Friday (April 17).
Australia is one of the world's biggest exporters of crops including wheat, barley and canola but relies on fertiliser imports that are threatened by the war on Iran, which has cut supply from the Middle East, a major urea producer.
The price of urea, a source of nitrogen that fuels plant growth, has risen by around 60 per cent in Australia since the war began in late February.
Many farmers now sowing winter crops are considering planting less to reduce their need for fertiliser, which even if available may cost too much.
Fuel costs have also shot up, adding to pressure on farm budgets.
Reduced planting or reduced fertiliser application on planted crops would cut crop production and global supply, potentially pushing up food prices.
Australia has enough fertiliser for the coming weeks but must import around 1.3 million tonnes of urea to meet its needs during the remainder of the winter crop season, the government said. The 250,000 tonnes represents one-fifth of that.
"This guarantees supply of fertiliser to Australian farmers at this critical time," Agriculture Minister Julie Collins said in a statement.
"This will mean Australia can continue to play an important role supporting food security in Indonesia and our region at a time of global uncertainty," she said.
Australia is a major supplier of food to Indonesia. Prime Minister Anthony Albanese and other senior ministers have visited several countries in the Asia-Pacific region in recent weeks to shore up fertiliser and fuel supplies.
They have touted Australia's role as a key supplier of commodities like grain and natural gas.
Scott Bowman, president of the company importing the fertiliser, Incitec Pivot, said, "This additional volume for the period May to December, at prevailing market prices, is another critical plank in servicing the needs of Australian farmers."
The supplier is PT Pupuk Indonesia. - Reuters
