India Seeks 2.5 Million Tonnes Of Urea Amid Middle East Supply Disruptions
India is planning to import 2.5 million metric tonnes of urea to stabilise domestic supplies, which have been impacted by disruptions linked to tensions in the Middle East. As the world’s largest importer of the fertiliser, the country has issued a tender through Indian Potash Ltd (IPL) to procure 1.5 million tonnes via the west coast, with an additional 1 million tonnes planned through the east coast. Shipments are expected to begin by mid-June, with bids due by April 15.
The imports are crucial as India prepares for the upcoming monsoon sowing season, when demand for fertilisers rises sharply for crops such as rice, corn, and soybeans. Reduced gas availability due to the ongoing conflict has affected domestic urea production, leading to a monthly decline of around 600,000 to 700,000 tonnes. Although gas supplies have improved recently, the shortfall has necessitated higher imports.
India depends heavily on the Gulf region for both urea and liquefied natural gas (LNG), a key input for fertiliser production. However, global supply remains tight due to disruptions in the region, which could influence pricing in the current tender. Industry experts note that the outcome of India’s procurement process may set a benchmark for global urea prices, especially as rates have risen since the last tender in November.
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