The government is considering the abolition of subsidies on fertilizers sold to farmers in an effort to fill the gap between actual and subsidized prices of the commodity, a high-ranking official speaking on condition of anonymity said.
The same official explained that the government would compensate farmers by raising the official prices at which it buys their crops.
Subsidies for fertilizers reached LE900 million last year, all of which was borne by the Finance Ministry.
The official went on to explain that the Agriculture Ministry planned to form joint-venture companies with the private sector mandated with distributing to farmers some eight million tons of fertilizers produced by public-sector factories. The ministry, however, would retain majority shares in these companies to ensure that distribution was carried out fairly and that prices were not manipulated.
In 2008, the Agriculture Ministry banned the private sector from working in the fertilizer industry.
Translated from the Arabic Edition.
