India Faces Urea Import Shortfall Amid Middle East Tensions
India Seeks 2.5 Million Tons of Urea Amid Middle East Conflict
India, the world's largest urea importer, is planning to purchase approximately 2.5 million tons of the essential crop nutrient in anticipation of the upcoming monsoon sowing season. The country's domestic production is being disrupted by the ongoing Middle East conflict, resulting in tighter availability.
The Indian Potash Ltd., which procures urea on behalf of the government, has issued a tender to import 1.5 million tons of the nutrient through the country's west coast. The remaining volumes will be sourced through the east coast. According to the tender document posted on the company's website, the shipments are expected to depart from the load port by June 14.
India typically imports urea through global tenders to meet local demand. However, this is the first such purchase since the US-Israeli war on Iran, making the timing particularly significant. Sowing for new crops, including rice, corn, and soybeans, is set to begin in a couple of months.
The country's reliance on natural gas for urea production is heavily dependent on imports from the Middle East. The shortage of liquefied natural gas (LNG) due to the effective closure of the Strait of Hormuz forced some producers in South Asia to shut down their plants last month. Indian authorities are in talks with major producers and exporters of nitrogen-based and phosphatic fertilizers to secure direct supplies.
The global urea prices have surged since the start of the war, as nearly 45% of world supplies pass through the Persian Gulf. Any prolonged shutdown risks driving prices even higher.
Fertilizer Requirements and Availability
| Fertilizer Type | Required Quantity | Opening Stockpiles |
|---|---|---|
| Fertilizers | 39 million tons | 18 million tons |
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According to the fertilizer ministry, India requires approximately 39 million tons of fertilizers for crops grown during the June-September rainy season. The country had opening stockpiles of about 18 million tons, with the remainder expected to be met through domestic production and imports.
The deadline for the offers is April 15, and they must remain valid through April 23, Indian Potash has stated.
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