India has stepped up efforts to secure fertiliser supplies ahead of the crucial kharif sowing season, floating a fresh global tender to import 1.7 million tonnes of urea as disruptions in West Asia continue to strain supplies of natural gas and ammonia, key raw materials used in domestic production, Bloomberg reported on May 27.
State-run National Fertilizers Limited has invited bids for importing 900,000 tonnes through the west coast and the remaining volumes through the east coast, according to a tender notice issued on Wednesday. Cargoes are required to sail by July 20, aligning with the peak stocking period before large-scale sowing of rice, maize and soybean begins across the country.
The move comes as India, the world’s largest importer of urea, seeks to build adequate inventories amid continuing volatility in global fertiliser and LNG markets following the conflict involving Iran and Israel. Industry executives said the latest procurement is aimed at ensuring uninterrupted availability during the June-September monsoon season, when fertiliser demand rises sharply.
Also read | The City of Gold starts coming back to life after its darkest hour
India had earlier floated a separate tender for 2.5 million tonnes of urea in April after supply disruptions linked to the conflict tightened availability and pushed up international prices.
Domestic urea production has come under pressure because fertiliser plants rely heavily on imported natural gas, a substantial portion of which traditionally arrives from the Middle East. The effective closure of the Strait of Hormuz earlier this year disrupted LNG shipments, forcing several South Asian fertiliser producers to either curtail operations or temporarily shut units.
To stabilise local supplies, the government increased gas allocation to fertiliser plants to around 90% of average consumption from 70-75% earlier, after LNG availability improved through alternative sourcing arrangements.
Officials and industry executives said India has also diversified sourcing beyond the Gulf region, securing supplies from Russia, Egypt, Qatar, Nigeria and other exporting nations. The government has been encouraging long-term supply agreements and alternative shipping routes to reduce dependence on the Strait of Hormuz.
Global urea prices, however, remain elevated. Market participants estimate benchmark import prices have nearly doubled from levels seen before the West Asia conflict, reflecting higher freight costs, limited spot availability and disruptions to trade flows through the Persian Gulf, through which a significant share of global fertiliser shipments transit. India’s previous import tender was reportedly concluded at sharply higher prices compared with earlier purchases.
Also read | From $22 billion to zero: Success, not failure, brought Byju down
The fertiliser ministry has projected total requirement for the kharif season at around 39 million tonnes across nutrients. Current inventories are estimated at nearly 20 million tonnes, supported by domestic production and imports already received at Indian ports.
Government officials have maintained that fertiliser availability remains comfortable despite global supply-chain disruptions, though industry executives cautioned that prolonged tensions in West Asia could keep import costs elevated through the sowing season.
