India Faces Fertilizer Supply Challenges Amid Iran Conflict
Iran war: The fertiliser challenge India faces, and the possible way out
The Indian Express
Image: The Indian Express
India is grappling with a significant increase in fertilizer prices due to supply disruptions caused by the ongoing conflict between the United States and Iran. The price of urea has nearly doubled since February, impacting the upcoming kharif crop season. The country is exploring solutions, including the use of biostimulants and fortified fertilizers to mitigate the crisis.
- 01Urea prices have surged from $508 to $935 per tonne in two months due to supply shocks.
- 02India's urea availability for the kharif season is critically low, with only 5.5 million tonnes available against a requirement of 19.4 million tonnes.
- 03The conflict has disrupted major fertilizer supply routes, particularly from Gulf Cooperation Council countries.
- 04Farmers may shift to alternative fertilizers like triple super phosphate due to the scarcity of ammonia.
- 05The crisis presents an opportunity for India's biostimulants industry to grow by enhancing fertilizer efficiency.
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India is facing a fertilizer supply crisis as the conflict between the United States and Iran has led to significant price increases. On April 4, Indian Potash Limited (IPL) issued a tender for 2.5 million tonnes of urea, with bids reaching $935 per tonne, nearly double the price from February. This surge is attributed to supply disruptions following the closure of the Strait of Hormuz, a vital shipping route for fertilizers. With the kharif crop season approaching, the Union Agriculture Ministry has assessed a requirement of 19.4 million tonnes of urea, but only 5.5 million tonnes are currently available. The Gulf Cooperation Council countries previously supplied nearly 40% of India’s urea imports, but the ongoing conflict has severely impacted these supplies. In response, manufacturers are proposing to coat fertilizers with micronutrients to enhance efficiency, while the biostimulants industry may see growth as farmers seek alternatives to traditional fertilizers. This crisis not only threatens the kharif crop season but also raises concerns for the upcoming rabi season, highlighting the need for immediate solutions.
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The fertilizer supply crisis could lead to reduced crop yields for farmers, affecting food production and prices in India.
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