Brazil in Talks for Fertilizer Subsidies as Iran Conflict Hits Supply
Brazil's fertilizer industry seeks a 2 billion-real subsidy from the government to counter supply disruptions from the Iran war.
Brazil's fertilizer sector is negotiating a financial relief package with the federal government as the ongoing conflict in Iran continues to disrupt global supply chains. The proposed program, valued at 2 billion reais (approximately $388.56 million), would run for three months and is designed to help suppliers keep fertilizer prices within reach for farmers.
Eduardo Monteiro, Mosaic's country manager for Brazil and Paraguay, confirmed the discussions. He highlighted sulfur as a key focus of the aid package, noting that the mineral's global trade has been severely impacted by the war. Around 60% of the world's sulfur output transits through the strategic Strait of Hormuz, a chokepoint now vulnerable to conflict-related disruptions.
The subsidy talks come as Brazilian agriculture, a major global exporter, faces rising input costs. By supporting suppliers, the government aims to cushion domestic farmers from the full impact of international market volatility. No final agreement has been announced, and details of the program's implementation remain under discussion.