Fertilizer supply in India is coming under pressure as Middle East tensions and China’s export curbs tighten global availability ahead of the sowing season. The government is now exploring imports from Russia, Belarus, and Morocco to avoid shortages.
The country, one of the world’s largest fertilizer importers, is taking precautionary steps to avoid any disruption in supply during the upcoming agricultural cycle.
🌍 Middle East Crisis Raises Supply Concerns
The Middle East plays a critical role in India’s fertilizer supply chain. Nearly half of India’s imports of urea and diammonium phosphate (DAP) come from the region.
Saudi Arabia remains the largest supplier of DAP, while Oman leads in urea exports to India.
However, ongoing tensions in the region have raised fears of supply disruptions. A government source said that while current stock levels are higher than last year, prolonged conflict could tighten availability.
China Export Curbs Add Pressure
At the same time, China, a major global fertilizer exporter, has tightened its export controls.
This move has reduced supply in the international market and added pressure on importing countries like India.
With two major supply sources under stress, Indian authorities are acting early to diversify procurement.
Demand Set to Rise Before Sowing Season
Fertilizer demand in India peaks during June and July, when farmers begin planting crops such as rice, corn, cotton, and oilseeds.
To prepare for this period, shipments of urea and DAP usually arrive between March and May.
Any delay or disruption during this window can affect farm productivity and crop output.
India Expands Supplier Base
To manage the risk, India is in talks with Russia, Belarus, and Morocco to increase fertilizer imports over the coming months.
The country is also considering Indonesia as a backup supplier. Although supplies from Indonesia may be limited, officials see it as an additional safety option.
Indian fertilizer companies typically import individually, but negotiations with global suppliers are often done collectively under government oversight due to heavy subsidies in the sector.
Urea Supply Under Special Focus
India is particularly concerned about urea, the most widely used fertilizer in the country.
Urea production depends heavily on natural gas. Disruptions in LNG supply, especially from Qatar, have increased concerns. Tensions around the Strait of Hormuz have further complicated shipments.
To manage the situation, the government has prioritized gas allocation to fertilizer plants. Officials confirmed that plants are receiving at least 70% of their usual gas supply.
Prices Surge as Supply Tightens
The global fertilizer market is already reacting to supply uncertainties.
Before the crisis, urea prices were below $425 per tonne. Now, prices have surged above $600 per tonne due to tightening supply.
This sharp rise could increase subsidy burden and impact affordability if the trend continues.
Government Moves to Prevent Shortage
Despite the challenges, officials maintain that there is no immediate shortage in the country.
However, the government is taking proactive steps to ensure smooth availability during the peak demand season.
By diversifying import sources and securing supplies early, India aims to safeguard its agricultural output and protect farmers from potential disruptions.
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