
India faces soaring urea prices due to Middle East conflict
India faces soaring urea prices due to Middle East conflict
- India plans to import 2.5 million metric tons of urea amid supply disruptions from the Middle East conflict.
- The new import prices are nearly double those negotiated earlier this year, significantly impacting domestic subsidies.
- This surge in urea prices is expected to strain global fertilizer supplies, prompting other nations to compete for available resources.
Story
India is facing a significant disruption in its urea imports due to the ongoing conflict in the Middle East, which has severely affected global fertilizer supplies. In early April 2026, following these supply disruptions, India reported record purchases of urea in anticipation of its monsoon sowing season. The government plans to import 2.5 million metric tons of urea, a critical nitrogen-based fertilizer, marking its first purchase since the conflict began in February 2026. These imports come at a steep price, with Indian Potash Ltd. agreeing to pay $935 per ton for 1.5 million tons to be delivered on the west coast, well above the earlier price of $508 per ton. Additionally, 1 million tons will be delivered to the east coast for $959 per ton, compared to the earlier bid of $512 per ton. These purchases represent a striking shift in costs due to the current geopolitical situation affecting production and transportation of fertilizers, further exacerbated by a shortage of liquefied natural gas, which is essential for urea production. India's dependency on natural gas imports and urea production means that these increased costs will likely lead to a surge in the country's fertilizer subsidy bill, as the government compensates companies selling at lower prices to farmers. As New Delhi takes measures to secure supplies amidst these challenges, other nations are also expected to face similar pressures, resulting in an escalation of global fertilizer prices and an overall strain in supplies.