Cabinet Overhauls Urea Fertilizer Distribution, Tying Supply to Commodity Exchange Base Price

In cabinet decree No. 94328/T65351H dated 10 Aban 1405 (November 1, 2026), the government ordered the Agriculture Jihad Ministry, working with the petrochemical industry's employers' association, to supply urea fertilizer to the distribution network at the base price of the Iran Mercantile Exchange, which is announced weekly in its dedicated hall. The decree annuls the earlier decree No. 70763/T62593H of 3 Mordad 1403 (July 24, 2024). Several urea-producing petrochemical companies, among them PRDZ (Pardis Petrochemical), disclosed it on Codal.

According to those disclosures, the state will pay the urea subsidy to farmers as purchase credit matched to cropping patterns, and past settled claims of urea producers are to be offset by transferring state assets that can be sold and by instruments such as Gam bonds. The CEO of Parsian Oil and Gas Holding told Boursenews that producers were previously required to hand about one third of output to the Agriculture Ministry, with much of the price left as overdue receivables. Full implementation could ease these companies' liquidity strain; the disclosures give no timetable for settling the arrears.