India Secures Fertilizer Supplies After Strait of Hormuz Disruptions

The Government of India successfully mitigated fertilizer supply chain disruptions after 15 vessels carrying urea, di-ammonium phosphate (DAP), and sulphur safely crossed the Strait of Hormuz. The shipments, which include 3.32 lakh tonnes of urea, 2.57 lakh tonnes of DAP, and 1.11 lakh tonnes of sulphur, had been stalled since February 28 due to conflict in West Asia. Maritime traffic gradually resumed after June 17, following a memorandum of understanding between the United States and Iran.

To counter the crisis and soaring global prices, India diversified its imports, sourcing nutrients from Russia, Oman, the United States, the Netherlands, and Saudi Arabia. The government utilized 28 Indian Missions abroad for diplomatic outreach to ensure stability. Domestic efforts also ramped up, with natural gas supplies to fertilizer plants restored from 65% to 100% capacity, allowing urea plants to operate at full capacity. Domestic urea production for April to June reached between 7.16 and 7.2 million tonnes, exceeding official targets.

India has secured 197.56 lakh tonnes of fertilizer stocks, representing over 51% of its annual requirement. While the government reports comfortable stock levels as of July 2, industry executives warn that war-risk insurance premiums and freight costs remain elevated and may take three months to normalize. Union Minister J.P. Nadda stated that the government prioritized farmers' welfare to ensure timely and affordable fertilizer availability despite challenging global circumstances.