Overview
- The government helped broker a commercial agreement between Incitec Pivot Fertilisers and state-owned PT Pupuk Indonesia to supply extra urea to Australia.
- The deal secures about 250,000 tonnes for delivery from May to December, which Incitec Pivot called a key step to meet farmer needs.
- Officials said the volume covers roughly 20% of the fertiliser still needed this season, with urea being the main nitrogen input that drives crop yields.
- Supply strains stem from the Strait of Hormuz being shut to much urea traffic, and industry notes that about 60% of Australia’s urea normally moves through that chokepoint.
- Canberra also bought about 100 million litres of diesel from Brunei and South Korea under new Strategic Reserve powers to steady fuel for farm work and freight.