India looks to boost fertilizer imports from Russia and Belarus – Reuters
India is looking to boost fertilizer imports from Russia, Belarus, and Morocco as a supply crunch looms due to the Middle East conflict, Reuters has reported.
Export curbs put in place by China could further dampen stocks ahead of the summer planting season, the news outlet said.
The Middle East accounts for about half of India’s fertilizer imports, while Saudi Arabia is its largest diammonium phosphate (DAP) provider and Oman the biggest urea supplier.
“We’ve got more stocks than last year, but if the war goes on longer, things could get tight,” Reuters quoted an unnamed government source as saying. “So we’re in touch with Russia and others to bring in more supplies over the next few months.”
It also plans to approach Indonesia for supplies.
Bloomberg reported last week that India has urged China to ease export curbs on urea. Earlier last week, New Delhi said India had adequate stock of key fertilizers.
The South Asian nation’s urea and DAP inventories are up 10.7% and 105%, respectively, from a year ago.
Indian companies import fertilizers individually but negotiate collectively with suppliers, as the sector is highly regulated. The government subsidizes retail sales to farmers.
New Delhi’s concerns also stem from a shortage of liquefied natural gas, a key feedstock for urea production. Qatar is India’s largest supplier of imported LNG, but shipments have been disrupted following Iran’s de facto blockade of the Strait of Hormuz. Around a third of the world’s nitrogen fertilizers pass through the strait.
India is the world’s biggest urea importer. If the Middle East-linked disruption persists, it may be forced to seek additional supplies ahead of its main agricultural season, which begins in June with the arrival of monsoon rains.
Domestic urea production capacity has trailed demand. Rating agency ICRA projects that India’s reliance on urea imports will increase to around 30% of total consumption by 2030.
Agriculture is India’s mainstay, which, along with allied activities, accounted for 16% of India’s gross domestic product in the 2024-25 fiscal year. It also provides livelihoods to more than 46% of the population.
