The Ministries of Mines and Energy and Agriculture presented a memorandum of understanding with Venezuela to create alliances aimed at stabilizing fertilizer prices.
The agreement proposes an alliance between Monómeros and a subsidiary of Ecopetrol and Gecelca. Ecopetrol would sell sulfur directly to Monómeros, cutting intermediation costs by close to 35 percent.
Ecopetrol would invest nearly one trillion pesos from dividend advances to subsidize fertilizers. Minister Edwin Palma said the memorandum seeks to guarantee affordable fertilizers for rural communities and defend national food production.
The initiative responds to the impact of the Middle East war on transit through the Strait of Hormuz and to the effects of the El Niño phenomenon expected in the second half of the year.
