EU Fertiliser Tariffs: A Double-Edged Sword for Farmers

EU tariffs intended to reduce dependency on Russian fertilisers are impacting European farmers by increasing costs. Despite not imposing sanctions on food or fertilisers, the gradual increase in tariffs aims to cut funding for Russia's war in Ukraine. However, these tariffs risk pushing fertiliser costs higher, thus affecting consumer prices.

European Union tariffs on Russian fertiliser imports, designed to cut funding for Moscow's war in Ukraine, are inadvertently hitting European farmers. With Europe accounting for around 25% of its fertiliser imports from Russia, farmers are now facing heightened costs, raising concerns over potential surges in consumer prices.

Despite no direct sanctions on food or fertiliser exports following Moscow's invasion of Ukraine, the EU has imposed gradual tariffs since July 1 as part of its strategy to become less reliant on Russian supplies. This move has pushed global fertiliser prices upwards amidst already high energy costs and environmental regulations faced by farmers.

As European suppliers increase prices, farmers are turning to more expensive sources such as Canada. While some farmers hold off on purchasing, hoping for price decreases, others face unsustainable profitability. The EU aims to monitor tariffs' impacts, with potential delays if prices become excessively burdensome.

(With inputs from agencies.)