Government Issues Tender to Import Fertilizers Ahead of Monsoon Sowing Season

India Seeks 1.7 Million Tons of Urea Amid Disrupted Gas Supplies

India is seeking offers from global suppliers to purchase 1.7 million tons of urea, a widely used nitrogen fertilizer, in anticipation of the upcoming monsoon sowing season. The move comes as a result of the Middle East conflict disrupting gas supplies for domestic output.

National Fertilizers Ltd. Issues Tender

National Fertilizers Ltd., a state-run producer that also imports the crop nutrient for the government, has issued a tender to buy 900,000 tons of urea through the country's west coast and the remaining volume via the east coast. The tender notice was posted on the company's website on Wednesday, with shipments expected to leave the loading port by July 20.

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India's Urea Demand and Supply

India regularly purchases urea through global tenders to meet local demand. The latest tender is the second since the start of the US-Israeli conflict with Iran. The purchase plan comes ahead of the new sowing season, with plantings of key crops including rice, corn, and soybeans set to begin next month.

Impact of Middle East Conflict

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Urea production in India, the world's largest importer of the crop nutrient, depends heavily on natural gas. Much of this gas is imported from the Middle East and used to produce ammonia, a key feedstock. However, tighter LNG supplies following the effective closure of the Strait of Hormuz forced some South Asian producers to shut plants in March, curbing output.

Rising Global Urea Prices

Global urea prices have surged since the start of the conflict, as nearly 45% of global supplies transit through the Persian Gulf. India bought 2.5 million tons of urea in its previous tender at prices nearly double pre-conflict levels.