India Urea Import Price Nearly Doubles
India is set to import 2.5 million tonnes of urea at sharply higher prices, showing how the West Asia conflict is now pushing up farm input costs ahead of the monsoon sowing season. The purchase is significant because India is the world’s largest urea importer, and the tender comes at a time when supply disruptions are tightening the global fertiliser market.
India Urea Import Price Jumps Sharply
Indian Potash Ltd, the agency handling the imports, is expected to secure 1.5 million tonnes for the west coast at about $935 per tonne and another 1 million tonnes for the east coast at about $959 per tonne. These rates are nearly 90% higher than the roughly $490 per tonne level seen before the conflict disrupted regional supplies. The purchase is expected to be one of India’s biggest single urea import deals in recent years.
West Asia Conflict Hits Fertiliser Supply
The spike is linked to supply stress in West Asia, a major source region for urea and related inputs. Disruptions tied to the Strait of Hormuz and pressure on ammonia and natural gas flows have hit production and freight economics. India’s dependence on imported fertiliser has made it especially vulnerable to this shock, particularly before kharif crop planting for rice, maize and soyabean.
Fertiliser Subsidy Burden May Rise
Higher import prices are likely to increase India’s fertiliser subsidy bill because retail urea prices for farmers remain heavily controlled. The latest tender also signals that global buyers may face tighter availability as India locks in a large share of exportable supply. For the government, the immediate priority is ensuring enough fertiliser reaches farms in time, even if procurement costs rise sharply.
