India Seeks to Increase Fertilizer Imports Amid Supply Risks
Restrictions on exports imposed by China could further tighten supplies ahead of the crucial summer planting season. The Middle East currently supplies around half of India’s fertilizer needs, with Saudi Arabia being the top source of diammonium phosphate (DAP) and Oman providing the largest share of urea.
“We’ve got more stocks than last year, but if the war goes on longer, things could get tight,” a government source said. “So we’re in touch with Russia and others to bring in more supplies over the next few months.” India also plans to engage with Indonesia to secure additional shipments.
Last week, reports indicated that India requested China to relax export limits on urea. Earlier, authorities confirmed that the country currently maintains sufficient reserves of essential fertilizers. Inventory levels for urea and DAP have risen 10.7% and 105%, respectively, compared to the previous year.
Indian fertilizer companies handle imports individually but coordinate collectively with suppliers due to heavy regulation, and the government provides retail subsidies to farmers.
Concerns are also fueled by a shortage of liquefied natural gas (LNG), a key input for urea production. Qatar is India’s primary LNG supplier, but deliveries have been disrupted following Iran’s effective blockade of the Strait of Hormuz, through which roughly a third of the world’s nitrogen fertilizers are transported.
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