Fertilizer shortages and rising costs threaten agriculture in Uganda and Malawi

Agricultural sectors in Uganda and Malawi are facing severe fertilizer shortages and price hikes driven by international supply disruptions and domestic stock deficits.

In Uganda, conflict involving Iran and the potential closure of the Strait of Hormuz have disrupted the trade of energy and fertilizer raw materials. Because nitrogen-based fertilizers rely on natural gas and phosphate fertilizers require sulfur, the regional instability in the Persian Gulf has caused prices to skyrocket. For example, urea prices reached approximately Shs220,000 per 50kg bag in July.

Malawi is facing a massive supply gap, with current national stocks estimated at 148,000 metric tonnes against an annual requirement of up to 475,000 metric tonnes. This leaves a deficit of over 300,000 metric tonnes. Smallholder farmers in Malawi report that urea prices have surged from K150,000 in February to K210,000, with some NPK fertilizers approaching K250,000 per bag. Delays in government subsidy programs have added to the uncertainty for the upcoming planting season.