Key fertiliser buyer India issues tender as war hits supply

India, the world’s largest urea importer, is aiming to buy about 2.5 million tons of the key crop nutrient ahead of the monsoon sowing season as the Middle East conflict disrupts domestic production, tightening availability.
Indian Potash Ltd., which buys urea for the government, issued a tender on Saturday to import 1.5 million tons of urea through the country’s west coast, and the remaining volumes to come via the east coast, according to a tender document posted on the company’s website. The shipments should leave the load port by June 14.

India regularly imports urea through global tenders to meet local demand, but this is its first such purchase since the US-Israeli war on Iran, making the timing in focus. Sowing for new crops, especially rice, corn and soybeans, is set to begin in a couple of months.


The South Asian nation’s urea production relies heavily on natural gas, much of which is imported from the Middle East and used to make ammonia, a key input. However, a shortage of LNG due to the effective closure of the Strait of Hormuz forced some producers in South Asia to shut plants last month. Indian authorities are in talks with major producers and exporters of nitrogen-based and phosphatic fertilizers to secure direct supplies.

Global urea prices have surged since the start of the war as nearly 45% of world supplies pass through the Persian Gulf. Any prolonged shutdown risks driving prices even higher.

India requires about 39 million tons of fertilizers for crops grown during the June-September rainy season, according to the fertilizer ministry. The country had opening stockpiles of about 18 million tons, with the remainder expected to be met through domestic production and imports, it said

The deadline for the offers is April 15, and they must remain valid through April 23, Indian Potash said.