Fertiliser prices will grow beyond the 60% jump seen so far this year, according to analysts. Producers, too, believe the trend will continue.

“There is a raw material boom going on in the world. The growth in fertiliser prices is tracking the energy boom,” said Dmitry Strezhnev, the head of Eurochem, Russia’s major agrochemical company. 

The demand for fertiliser has been driven by a number of events, including population growth, shrinking world grain stocks and the appetite for corn and palm oil to make bio fuel.

All these factors have led to a 30% increase in Russian domestic fertiliser prices.

Following the price freeze on several food products to ease inflation, Russian fertiliser producers may also freeze prices on their production.

This situation has led to increasing demand for shares of fertiliser companies listed on the Russian financial markets.

One of the leading producers, Akron, is taking advantage of the situation and planning to issue shares on the London market to hopefully raise $US 1 billion.