India Moves to Secure 2.5 Million Tons of Urea Amid Middle East Supply Disruptions

India, the world’s largest importer of urea, has announced plans to purchase 2.5 million metric tons of the essential fertilizer to bolster domestic supplies. The decision comes as the ongoing U.S.-Israeli war with Iran has disrupted global supply chains, tightening availability of key crop nutrients.

State-run Indian Potash Ltd. (IPL) issued a tender on Saturday to import 1.5 million tons via the country’s west coast, with the remaining 1 million tons expected through east coast ports. Shipments are scheduled to depart by June 14, with bids due by April 15, aligning with the start of the main planting season for rice, corn, and soybeans.

India relies heavily on imported fertilizers, including urea, diammonium phosphate (DAP), and muriate of potash, as well as liquefied natural gas (LNG), a critical feedstock for domestic urea production. The Gulf region accounts for 20% to 30% of India’s urea imports and roughly 50% of its LNG imports, according to Aparna Sharma, additional secretary in the Department of Fertilisers.

Domestic urea production fell last month due to limited gas availability following the Middle East conflict, though supplies to plants have improved recently. Industry sources estimated local production dipped by 600,000 to 700,000 tons per month, with imports expected to offset some of the shortfall.

Global supply disruptions have limited surplus availability, raising questions about tender participation and pricing. In the previous November tender, IPL procured urea at $418.40 per ton on a cost-and-freight (CFR) basis. Current geopolitical tensions have pushed prices higher, and the upcoming tender is expected to set a benchmark for other buyers.