India Boosts Fertilizer Imports from Russia and Morocco

India is currently in negotiations with Russia, Belarus, and Morocco to increase its fertilizer imports. This strategic move aims to safeguard the nation's agricultural sector as tensions in the Middle East and export curbs by China threaten to disrupt global supply chains ahead of the summer planting season.

Agriculture remains a vital component of the Indian economy, requiring significant quantities of urea, diammonium phosphate (DAP), and muriate of potash. Historically, the Middle East has supplied approximately half of the country's DAP and urea. Saudi Arabia is the primary supplier of DAP, while Oman serves as the leading source of urea.

"Weve got more stocks than last year, but if the war goes on longer, things could get tight," said a government source familiar with the matter, who declined to be named as he was not authorised to speak to the media. "So were in touch with Russia and others to bring in more supplies over the next few months."

While current stockpiles are higher than last year, the government is eager to prevent any shortages during June and July, when farmers begin planting rice, corn, cotton, and oilseeds. In addition to traditional partners, India is exploring supplies from Indonesia as a contingency measure. The global market is also being influenced by major potash producers like Intrepid Potash, Inc., as supply constraints drive up costs.

Energy availability is another critical factor, as urea production relies on natural gas. Qatar is the largest supplier of imported LNG to India, but shipments have faced potential disruptions after Iran threatened maritime routes in the Strait of Hormuz. These threats followed regional escalations involving the United States and Israel.

To ensure domestic production remains stable, authorities have prioritized gas supplies to fertilizer plants, guaranteeing they receive at least 70% of their average consumption. The impact of these global pressures is already visible in market pricing.

"Just before the war, there was ample urea on the world market, with prices below $425 a ton. Now supplies are tight, and prices have risen above $600," said a Mumbai-based official with a fertilizer-producing company.