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How India is Navigating Fertilizer Supply Amid West Asia Tensions

In light of the recent conflicts in West Asia, India's fertilizer supply chain has shown remarkable resilience. The Ministry of Chemicals and Fertilizers reports that the majority of vessels carrying essential fertilizers have successfully crossed the Strait of Hormuz. With proactive measures and diversified sourcing from various countries, India aims to ensure that farmers' needs are met despite global disruptions. This article delves into the strategies employed by the Indian government to maintain fertilizer availability and protect agricultural interests.
 

India's Fertilizer Supply Chain Remains Resilient


New Delhi: The recent conflicts in West Asia have not significantly impacted India's fertilizer supply chain, as confirmed by the Ministry of Chemicals and Fertilizers. Out of 20 vessels transporting fertilizers and raw materials, 15 have successfully navigated the Strait of Hormuz.


Among these vessels, eight are carrying 332,000 tonnes of urea, four are transporting 257,000 tonnes of DAP, and three hold 111,000 tonnes of Sulphur, all scheduled for delivery to Indian ports.


Additionally, five more vessels are on their way, including one with 25,000 tonnes of Ammonia and another with 45,000 tonnes of urea.


The Ministry also reported that loading is currently in progress for two more urea vessels and one Sulphur vessel, assuring that all shipments are expected to arrive as planned.


Despite the maritime disruptions caused by the conflict, the government has maintained a steady supply of fertilizers through effective planning, coordination, and ongoing monitoring.


New sources for fertilizer supplies have been established through diplomatic efforts.


Urea has been sourced from countries including Oman, Malaysia, Vietnam, Georgia, Nigeria, Russia, Finland, Egypt, Algeria, Turkiye, and the Netherlands.


For DAP and NPK, India has secured shipments via the Red Sea from Russia, Morocco, Egypt, the US, Jordan, South Korea, Tunisia, and Saudi Arabia.


Union Minister for Chemicals and Fertilizers, JP Nadda, noted that the West Asia conflict has disrupted global supply chains, leading to increased fertilizer prices and longer shipping times, affecting India as well. However, he emphasized that the government has prioritized farmers' interests despite the global price hikes, crediting the Department of Fertilizers for its proactive approach under the Prime Minister's guidance.


Natural gas supplies to fertilizer plants, which had dropped to about 65% during the disruptions, have now been fully restored to 100%, enabling all urea plants across the country to operate at full capacity.


In the first quarter of FY27 (April-June), domestic urea production reached 7.155 million tonnes, surpassing the target of 6.786 million tonnes by 369,000 tonnes. DAP production hit 984,000 tonnes against a target of 861,000 tonnes, while NPK production was recorded at 2.077 million tonnes and SSP at 1.350 million tonnes.


With an annual requirement of 38.39 million tonnes, India has secured fertilizer stocks totaling 19.756 million tonnes, which is over 51% of the yearly need.


As of July 2, urea stocks were at 6.908 million tonnes, DAP at 1.664 million tonnes, Muriate of Potash at 890,000 tonnes, NPK at 4.564 million tonnes, and SSP at 2.309 million tonnes, bringing total availability to 16.335 million tonnes.


The Ministry reiterated that a combination of diversified imports, increased domestic production, and sufficient stocking has ensured adequate fertilizer availability nationwide, reaffirming the government's commitment to protecting farmers' interests through timely supply measures.