HS Code:
Mineral or chemical fertilizers containing the two fertilizing elements phosphorus and potassium (HS Code: 3105.60) are critical inputs in modern agriculture, enhancing soil fertility and crop yields. These fertilizers combine phosphorus, essential for root development and energy transfer in plants, with potassium, which aids in water regulation and disease resistance. This product category is widely traded globally due to varying regional agricultural needs, soil conditions, and production capacities. The trade of these fertilizers is influenced by factors such as agricultural demand, geopolitical stability in key producing regions, and fluctuations in raw material prices.
Total Trade Volume
Approximately $2.5 billion USD
Data from 2022
Source
United Nations Comtrade Database & International Trade Centre (ITC)
$600 million USD
24% of total trade of total trade
Increasing
$450 million USD
18% of total trade of total trade
Stable
$300 million USD
12% of total trade of total trade
Increasing
$200 million USD
8% of total trade of total trade
Stable
$150 million USD
6% of total trade of total trade
Decreasing
Average Rate
5.2% ad valorem
Highest Rate
15% (imposed by certain developing countries to protect domestic industries)
Lowest Rate
0% (under free trade agreements like EU internal trade or USMCA)
Rising demand for sustainable agriculture
Increased interest in balanced fertilizers with phosphorus and potassium to reduce environmental impact while maintaining crop yields.
2021-2023
Geopolitical tensions affecting supply chains
Sanctions on Russia and Belarus have led to supply disruptions, pushing prices higher and forcing importers to seek alternative suppliers.
2022-2023
Shift towards precision farming
Growing adoption of technology-driven farming practices is increasing demand for tailored fertilizer blends, including phosphorus-potassium combinations.
2020-2023
Due to the ongoing Russia-Ukraine conflict, several Western countries imposed sanctions on Russian fertilizer exports, including phosphorus-potassium blends, leading to a significant reduction in supply.
March 2022
Global prices spiked by nearly 30%, prompting countries like India and Brazil to seek alternative suppliers such as Israel and Morocco.
The European Union introduced policies under the Green Deal to reduce dependency on chemical fertilizers and promote sustainable alternatives, affecting the import of traditional phosphorus-potassium fertilizers.
July 2023
Potential decrease in demand within the EU market, though non-EU agricultural economies may see increased export opportunities.
Belarus temporarily lifted export restrictions on fertilizers to certain countries in Asia and Latin America to stabilize its economy amid sanctions.
September 2023
Increased availability in select markets, though prices remain elevated due to logistical challenges and limited global supply.