According to Bloomberg, India — one of the world's biggest urea importers — received offers for the soil nutrient that were 12% below its June purchase price, signaling that the war-driven tightness in the global fertilizer market is easing. The drop extends a sharp correction from April, when India paid as much as $959 a tonne, nearly double pre-war levels.
Tender details: RCF draws bumper offers
State-run producer Rashtriya Chemicals & Fertilizers Ltd. (RCF), which also imports urea on behalf of the government, received offers for about 3.1 million tonnes against a 1 million-ton tender for the west coast, with prices between $393.65 and $435 a tonne, according to people familiar with the matter who asked not to be identified due to the commercial sensitivity of the information. For the east coast, submissions totaled 2.4 million tons against a 700,000-ton requirement, with offers between $390.25 and $435.5 a tonne, they said.
| Coast | Required volume (tonnes) | Submitted volume (tonnes) | Offered price range ($/tonne) |
|---|---|---|---|
| West coast | 1,000,000 | 3,100,000 | 393.65 – 435.00 |
| East coast | 700,000 | 2,400,000 | 390.25 – 435.50 |
The tenders show suppliers competing aggressively for Indian demand: the west coast drew over three times its required volume, and the east coast drew more than 3.4 times its requirement. The offered price ranges on the two coasts overlap closely: the lows differ by $3.40 per tonne and the highs by just $0.50 per tonne.
Price drivers: from April peak to August offers
India's fertilizer procurement has moved sharply lower over the past four months. In April, India paid as much as $959 a tonne — nearly double pre-war levels — according to Bloomberg.
Prices crashed to less than half for its June tender as supplies eased while global demand weakened.
The latest offers, received in August, are 12% below the June purchase price, extending the decline. A fertilizer ministry spokesperson didn't immediately reply to an email seeking comment sent after office hours, Bloomberg reported.
Supply risk: Strait of Hormuz remains a watch point
The easing in prices follows a period of acute supply disruption. Vessel traffic through the Strait of Hormuz, a key conduit for global fertilizer trade, has held well below normal since the war broke out in February, disrupting supplies and driving prices higher, according to Bloomberg. Peace talks between the US and Iran remain stalled, with both sides claiming control of the crucial waterway.
With traffic through the strait still below normal and talks deadlocked, the waterway remains a persistent risk for fertilizer supply chains, even as the latest tender offers point to ample near-term availability.
What the data means for traders and procurement teams
For commodity traders, agribusiness executives and procurement teams, the tender results confirm a shift toward ample supply in the global urea market. India was able to secure offers far exceeding its requirements on both coasts at prices in the $390–$435 range, indicating that sellers are competing for a share of Indian import volume. The narrow price spread between the west and east coast offers also points to limited geographic price dispersion.
The report was published on August 14, 2026, and is available on bloomberg.com.
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