Fertiliser price rise risks 'inflation disaster'

The chair of a major fertiliser firm said the Iran war could "unleash an inflation disaster" in the UK and even lead to "famine" in Africa and Asia.

A third of the world's key fertiliser chemicals pass through the Strait of Hormuz, with prices "doubling" since the war began.

Lord John Fuller, chairman of Nitrasol - a liquid fertiliser producer in Norfolk - told BBC Politics East that British farmers relied on nitrogen fertiliser to grow crops and make beer, butter, meat, milk and cheese.

The former Conservative leader of South Norfolk Council added that the government should relax restrictions on the fertiliser industry. The government said it was closely monitoring the situation.

Lord Fuller said: "I've been in the fertiliser business for 40 years. This is a really dangerous moment.

"People think, well, fertilisers? What's that got to do with me? Fertilisers are at the start of the food chain. Without fertilisers, there's no food."

He said there were real concerns of famines "in many countries of the world, countries that the West can afford to outbid for [fertiliser] supplies - so we're talking about Africa or we're talking about Pakistan and Bangladesh in particular - there's a huge risk".

He said the rise in fertiliser prices was also hitting the British economy.

"It's unleashed an inflation disaster," he said.

"Not only will people be paying more for their heating oil and petrol,
but also the food you need to eat."

He called on the government to scrap the introduction, due in January 2027, of a tax on imported carbon-intensive fertiliser.

Lord Fuller added that the government should also look at relaxing other regulations on the fertiliser industry.

A government spokesman said: "We are closely monitoring developments in the Middle East and the impacts on the food and farming sector.

"Working with the Competition and Markets Authority, we are taking action to support greater price transparency, and we will respond swiftly to any evidence of harmful practices across the economy causing unfair price rises and disruption, including with fertilisers."

BBC Politics East will be broadcast on Sunday, 29 March at 10:00 GMT on BBC One in the East of England, and will be available after broadcast on BBC iPlayer.

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