The government of the Islamic Republic of Iran, in a session on August 15, 2025, assigned the responsibility of planning the annual supply of 2.4 million tons of urea fertilizer to the National Petrochemical Company (NPC). This action was taken to organize the urea fertilizer market and facilitate farmers' access to this product.
Details of the Resolution and Urea Fertilizer Supply Plan
According to the new resolution, the National Petrochemical Company is required to collaborate with the Petrochemical Employers' Association to develop and implement the annual supply plan of 2.4 million tons of urea fertilizer in 50-kilogram packages through production units. This plan must be tailored to the needs of the agricultural sector and based on a schedule agreed upon with the Ministry of Jihad Agriculture.
Additionally, the National Petrochemical Company is obliged to prepare a national supply plan for urea fertilizer to reduce transportation costs and identify the responsible production companies. Oversight of the implementation of this plan will also fall under this company to ensure better coordination between producers and the distribution network.
Financial Mechanism and Support for Farmers
One of the key aspects of the resolution is the establishment of a mechanism for supplying urea fertilizer at the base price of the commodity exchange. The Ministry of Jihad Agriculture is required to announce the amount of urea fertilizer available for distribution on a weekly basis in the Iran Commodity Exchange. This supply will be carried out through the Agricultural Support Services Company and the Central Organization of Rural Cooperatives.
Furthermore, the Ministry of Jihad Agriculture must plan the required amount of fertilizer for different regions based on crop patterns and types of products. Additionally, a ceiling of 50% of the final costs of the distribution network for the years 2026 and 2027 has been assigned to the Ministry of Jihad Agriculture and the Organization for Planning and Budget.
This resolution will also provide urea fertilizer subsidies in the form of purchase credits based on the type of product and the area under cultivation to farmers. The Ministry of Jihad Agriculture is obliged to prepare an annual list of farmers eligible for subsidies.
In the financial section of this resolution, it has been emphasized that the amount of subsidy required by the Ministry of Jihad Agriculture in 2026 will be provided in coordination with the Organization for Planning and Budget. Additionally, to prevent liquidity constraints in the urea fertilizer supply chain, the utilization of the banking system's capacity has been anticipated.
One of the most important sections of the new resolution is the establishment of a mechanism for settling the claims of urea fertilizer producers. The Ministry of Economic Affairs and Finance is required to take necessary actions to offset confirmed and audited claims of petrochemical companies. This decision could help clarify part of the accumulated claims of petrochemical companies against the government.
Finally, Resolution No. 52593/T60764H dated May 24, 2024, has also been revoked by this decision. This new resolution could pave the way for improving the financial situation of producers and ensuring a sustainable supply of fertilizers needed for agriculture.
