ICC warned of a possible increase in grain prices due to a shortage of fertilizers

Prices for grain crops in certain regions of the world could increase by 80 percent in the medium term due to large-scale disruptions in the supply of mineral fertilizers. The head of the International Chamber of Commerce (ICC), John Denton, warned about this threat, as quoted by The Wall Street Journal.

Since the beginning of the protracted blockage of the Strait of Hormuz, caused by the war between the United States and Iran in the Middle East, the world market has lost about 2.7 million tons of critical products. The closure of the region's most important logistics artery, noted the head of the largest global business organization, affected almost 40 percent of fertilizer trade.

Denton explained that in the foreseeable future, the risk of rapidly rising grain prices will primarily be faced by countries that are heavily dependent on imports. One of the main victims, according to the head of the ICC, risks being the island state of the Philippines. This country, he explained, imports up to 90 percent of the fertilizer it needs. “The really critical problem is with fertilizers,” Denton said.