Hungary’s government is considering all possible steps to rein in rising fertilizer prices, including a price cap similar to the one introduced for the country’s gasoline prices in November, according to a Bloomberg report, citing Hungary’s MTI news agency.
According to the news agency, citing Hungary’s Agriculture State Secretary Zsolt Feldman, no decision has been reached yet.
According to a separate Bloomberg report last week, citing Hungarian Cabinet Minister Gergely Gulyás, the government blames the surging fertilizer prices on alleged cartel activity by the country’s only nitrogen fertilizer producer, Nitrogénművek Zrt., a privately-owned company owned by Szolnok, Hungary-based Bige Holding kft.
Hungary’s government has been stepping up pressure on Nitrogénművek in recent weeks, and has vowed to use “all available tools” against the company to ensure supplies to local farmers.
Agriculture Minister István Nagy has accused the producer of keeping fertilizer prices “artificially” high, and also said the company, which exports half its output, was limiting supply to Hungarian farmers, according to the report.
Nitrogénművek, in a Nov. 25 statement cited by the Bloomberg report, said record prices for fertilizers were due to global market developments, and reiterated that it would continue production for its customers in Hungary and aboard. The company also said an export ban would be illegal under European Union law.
Hungary’s competition authority in October issued an 11 billion forint (approximately $34 million at current exchange rates) file against Nitrogénművek, alleging cartel activity on the part of the company. Nitrogénművek has denied any wrongdoing.
The company’s owner, Laszlo Bige, has alleged the government is trying to wrest control of his company because he is financially supporting the opposition in next year’s parliamentary election.
Nitrogénművek produces CAN, AN, urea, and UAN, as well as ammonia.