Iran war: The fertiliser challenge India faces, and the possible way out, Pg15

Key Highlights:

• Indian Potash Ltd (IPL) issued a tender for 2.5 million tonnes (mt) of urea at nearly double the price ($935-$959 per tonne) compared to February rates.
• The price surge is attributed to supply shocks from the US-Israel versus Iran conflict and the Strait of Hormuz closure since February 28, 2026.
• Kharif season 2026 faces a urea shortage, with only 5.5 mt available against a requirement of 19.4 mt.
• Gulf Cooperation Council (GCC) countries previously supplied 60% of India's urea imports, and over 60% of LNG imports came from Qatar, UAE, and Oman.

Detailed Insights:

• The US-Israel versus Iran conflict has disrupted fertilizer supplies, leading to increased prices of urea, DAP, sulphur, and ammonia.
• Disruptions in LNG supply from Qatar, UAE, and Oman have reduced domestic urea production from 2.5 mt to 1.5-1.8 mt per month.
• Lower imports and domestic production may constrain urea availability during the upcoming kharif season, potentially impacting crop yields.
• Fortifying commodity fertilizers with micronutrients and freeing these products from maximum retail price (MRP) controls is proposed as a solution.
• Biostimulants, derived from microbes and natural substances, can enhance nutrient use efficiency and reduce the consumption of chemical fertilizers.
• The current crisis may provide a boost to India's biostimulants industry, offering a sustainable alternative to traditional fertilizers.
• The rabi season may face more severe challenges than kharif due to the ongoing disruptions in fertilizer supply and production.

Key Concepts Involved:

• Urea: A nitrogen-rich chemical compound used as a fertilizer in agriculture.
• Di-ammonium Phosphate (DAP): A widely used phosphatic fertilizer that provides essential nutrients for plant growth.
• Kharif Season: The crop-growing season during the monsoon months (June-October) in India.
• Biostimulants: Substances that enhance plant growth and nutrient uptake without directly providing nutrients.