• Ghana will distribute fertilizers for free in 2026, replacing subsidies
• Global prices have surged amid Middle East tensions and supply disruptions
• The policy could boost farming but add pressure on public finances

Ghana will replace its fertilizer subsidy program with free distribution for farmers during the 2026 planting season, President John Dramani Mahama announced on March 21, according to local media.

“We have procured fertilizers for our farmers, which are usually sold at subsidized prices. However, this time, I have instructed the Minister of Agriculture to distribute them free of charge,” the president said.

According to the state broadcaster Ghana Broadcasting Corporation, the government expects the policy to encourage farmers to expand cultivated land and invest more in agricultural production.

Global Fertilizer Market Under Pressure

The policy shift comes as global fertilizer markets face significant disruption tied to geopolitical tensions in the Middle East.

Since late February 2026, escalating conflict involving the United States, Israel, and Iran has led Tehran to block most maritime traffic through the Strait of Hormuz, a critical route for global fertilizer trade. The United Nations Conference on Trade and Development estimates that about one-third of global seaborne fertilizer shipments—around 16 million tons—pass through the strait.

In a March 19 note, the International Fertilizer Development Center said urea prices rose sharply within weeks of the escalation. Average FOB prices increased about 37% in the first week, then climbed further to around $715 per metric ton in the second week—roughly 45% above pre-conflict levels.

Other fertilizers are also trending higher. Prices for monoammonium phosphate (MAP) and diammonium phosphate (DAP) have risen about 8%, while potassium chloride (MOP) from the Baltic region is up around 11%, according to the same source.

For import-dependent countries like Ghana, these developments are expected to raise procurement costs at a critical moment, as the planting season for staple crops such as maize and rice typically begins in mid-March.

A Growing Fiscal Burden

In 2025, the government subsidized 200,000 tons of mineral fertilizers—70% NPK and 30% urea—for farmers, according to official data. By comparison, the country’s apparent annual fertilizer demand averaged 426,307 tons between 2020 and 2024, based on IFDC estimates.

With the shift to free distribution and rising global prices, the full cost of fertilizer supply will now fall on the state budget, regardless of volume.

Fertilizer use in Ghana stood at 28.9 kilograms per hectare in 2023, according to FAO data. While this is above the sub-Saharan African average of 18.2 kg/ha, it remains well below the 50 kg/ha target set under the 2006 Abuja Declaration.

Stéphanas Assocle