The reported move comes amid shortages due to conflict in the Middle East, which imports nearly half of New Delhi’s goods.
India is looking to increase fertilizer imports from Russia, Belarus and Morocco as fertilizer supply shortages are faced by the Middle East conflict, Reuters has reported.
Transfer curbs imposed by China could further reduce stocks ahead of the summer planting season, the news outlet said.
The Middle East accounts for about half of India’s fertilizer imports, while Saudi Arabia is its largest supplier of diammonium phosphate (DAP) and Oman is its largest supplier of urea.
“We have more stocks than last year, but if the war continues for a long time, things can be difficult,” Reuters quoted an unnamed government source as saying. “So we are in contact with Russia and others to bring more equipment in the next few months.”
It also plans to approach Indonesia for supplies.
Bloomberg information last week that India has asked China to reduce restrictions on the export of urea. Earlier last week, New Delhi said India had sufficient reserves of the essential fertilizer.
The South Asian nation’s urea and DAP inventories are up 10.7% and 105%, respectively, from a year ago.
Indian companies import fertilizers individually but negotiate collectively with suppliers, as the industry is highly regulated. The government provides subsidies for retail sales to farmers.
New Delhi’s concern also stems from the shortage of liquefied natural gas, an important feedstock for urea production. Qatar is India’s largest supplier of imported LNG, but shipments have been disrupted following Iran’s actual move to block the Strait of Hormuz. About a third of the world’s nitrogen fertilizers go through that stream.
India is the largest importer of urea in the world. If disruptions associated with the Middle East continue, it may have to seek additional supplies ahead of its main farming season, which begins in June with the arrival of monsoon rains.
Local urea production capacity has reduced demand. Rating agency ICRA estimates that India’s dependence on urea imports will increase to nearly 30% of total consumption by 2030.
Agriculture is India’s mainstay, which, along with allied activities, accounted for 16% of India’s GDP in the financial year 2024-25. It also provides livelihood for more than 46% of the population.
