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4h ago

India’s Fertiliser Buffer Holds for Kharif as Gulf Conflict Chokes Gas and Shipping

Prolonged LNG cuts could dent urea output, risking higher food prices later this year.

A piece of machinery sits underground at the Mosaic potash mine in Esterhazy, Sask. on Wednesday, May 3, 2017.
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Some farmers might opt to grow more soybeans rather than corn, which requires more fertilizer
While many US farmers have already bought the fertilizers they need for the year, those who waited have been hit with higher costs

Overview

  • Fertiliser Association of India says inventories can cover the upcoming kharif season, with total stocks at about 17.7 million tonnes as of March 6.
  • FAI reports gas supply to urea makers curtailed by up to 40%, and many plants are running near 60% capacity with some advancing maintenance outages.
  • The government is preparing an optimisation plan for natural gas, with fertiliser tagged a priority sector even as non‑priority users face tighter supply.
  • Transit through the Strait of Hormuz has largely stalled, freight and insurance costs have jumped, and industry data show urea prices climbing roughly 30% in early March.
  • India has accelerated imports—9.8 million tonnes already received with a further 1.7 million tonnes scheduled—and remains vulnerable due to heavy dependence on Gulf LNG, ammonia and sulphur.