Fertilizer Prices: Understanding Fertilizer Pricing

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The thing about fertilizer prices is that they never seem to be going down. Like fuel prices, fertilizer prices too seem to be on the rise every now and then with the increase being almost relentless in nature. So the question is why is fertilizer so expensive? Or rather what makes it so expensive? The answer to that may lie in several factors and we shall address all of them during the course of this article. However for now it is more a matter of understanding the composition first as that is the basic element of the pricing of any fertilizer in this market. So let’s get right into it.

The basic elements of any fertilizer are the components that we all know commonly as Potassium, Phosphorus and Nitrogen. The thing about potassium is that it needs to be mined in its chlorate form and the mines are often situated more often than not under the sea. Hence mining requires a lot of special equipment and understanding to say the least. Then there is always the cumbersome issue of storage and transportation. While nitrogen is more easily accumulated, it certainly costs a lot in storage for its volatility and not to mention transportation. Hence the products in use for a fertilizer have their own attached individual prices. It is hardly a surprise that fertilizer prices are high.

There are other factors that determine the price of a fertilizer. One such factor could be the processing cost. The others could be packaging, local taxes, distribution costs which all get added to the retail price at the end of the day. The advent of organic fertilizers has given those who need fertilizers a definite breather in terms of pricing. Fertilizer prices are almost bound to go up every time the cost of making it goes up which seems a high likelihood in terms of inorganic ones.

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Article author: Nisha t - click here to see more articles by this author

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