India urea imports could increase in the coming months as the government seeks additional fertilizer supplies from China amid growing concerns over gas disruptions caused by the Middle East conflict. The supply crunch is affecting fertilizer production in India because natural gas is a key raw material used to manufacture urea.
India Urea Imports May Rise Amid LNG Supply Disruptions
Officials from the Indian government have approached their Chinese counterparts to consider easing export restrictions on urea. The request follows supply disruptions of liquefied natural gas (LNG) caused by the escalating conflict in the Persian Gulf, which has affected fertilizer production in India.
Natural gas is a crucial feedstock for producing urea fertilizer. With LNG shipments becoming uncertain due to geopolitical tensions, some fertilizer plants in India have reportedly begun reducing production or temporarily shutting down operations.
Global Trade Risks Increase Due to Middle East War
The development highlights how countries are taking unusual steps to secure essential commodities as the conflict involving the United States, Israel, and Iran disrupts global trade routes. Rising tensions in the region have raised concerns over energy security and food supply chains worldwide.
Sources familiar with the matter say discussions between India and China are ongoing, but no final decision has been made regarding export approvals.
India Requests China to Ease Urea Export Restrictions
China, the world’s largest producer of urea, controls fertilizer exports through a quota system. While some shipments were allowed last year—including exports to India—China has not yet issued export quotas for 2026.
The timing is significant because farmers in China are preparing for the spring planting season, which is the peak demand period for fertilizers.
India’s Growing Fertilizer Demand
Although India does not currently face an immediate fertilizer shortage, the country remains the largest importer of urea globally. Any prolonged disruption in natural gas supply could force India to increase imports before the main planting season begins in June, when monsoon rains arrive.
Possible alternative suppliers for India include:
China
Russia
Indonesia
Malaysia
Egypt
These countries could help offset any supply gap if Middle East disruptions continue.
Fertilizer Imports and Upcoming Tender
According to India’s fertilizer ministry, the country has already imported 9.8 million tons of urea in the fiscal year ending March 31. Another 1.7 million tons is scheduled to arrive within the next three months.
Industry sources indicate that India is expected to issue a new urea import tender by the end of March or early April to secure additional supplies.
Impact on India’s Agricultural Sector
India is the world’s most populous nation and a major agricultural powerhouse. It is the largest producer and exporter of rice and also a leading producer of wheat, sugar, and cotton. Stable fertilizer supply is essential to maintain agricultural productivity and food security.
Gas Supply Cuts Add Pressure
The situation worsened after Qatar, one of India’s major LNG suppliers, reportedly reduced gas shipments to Indian buyers following the escalation of hostilities in the Middle East.
Fertilizer manufacturers in India, which rank second in priority for gas allocation after city gas distribution, are currently receiving only about 70% of their required gas supply. As a result, some fertilizer companies have started cutting production.
Outlook
If the Middle East conflict continues and LNG disruptions persist, India may need to increase fertilizer imports significantly to protect its agriculture sector. Negotiations with China and other exporters could become crucial to ensuring stable urea supplies before the upcoming monsoon planting season.
