The US-Iran conflict has exposed vulnerabilities in India's agricultural input supply chains, reinforcing the strategic imperative for greater domestic resilience, according to Komal Shah Bhukhanwala, executive director of SML Limited (formerly Sulphur Mills Limited).
Risks from imported inputs
"Escalating geopolitical tensions and energy volatility are exposing the risks of India’s dependence on imported fertilizer raw materials and global supply chains," Bhukhanwala told businessline. She noted that while the direct impact on SML has been manageable, the conflict has increased logistics costs and market volatility. The situation underscores the importance of investing in innovative agricultural technologies and manufacturing that are made in India to improve efficiency while reducing dependence on imported inputs.
Government support needed
The government can help by promoting high-nutrient-use-efficiency (NUE) fertilizers and advanced nutrient technologies that can reduce dependence on bulk fertilizer by 25–50 per cent, improve nutrient delivery, and conserve resources, according to Bhukhanwala. She also urged continued policy support for innovation, faster regulatory approvals, uniform GST for all grades of nutrients, export promotion, and investment in advanced agricultural technologies. Such measures will help strengthen India’s food security while enhancing the global competitiveness of the domestic agrochemical industry.
SML Limited's position and response
SML Limited, headquartered in Mumbai and established in 1960, is one of the global leaders in innovative agricultural solutions with operations in over 80 countries. The company holds over 950 patents and is among the world’s largest manufacturers of water-dispersible granule (WDG) formulations. With an annual group turnover of ₹2,200 crore, exports contribute more than 55 per cent of revenue. Despite global uncertainties, demand across key international markets has remained stable.
| SML Limited Key Metrics | Value |
|---|---|
| Annual group turnover | ₹2,200 crore |
| Global presence | Operations in over 80 countries |
| Patents held | Over 950 |
| Export share of revenue | >55% |
| Founded | 1960 |
| Headquarters | Mumbai, India |
SML experienced some temporary logistical challenges due to the tensions, but the company has maintained steady supplies to farmers, helping them improve yields and secure stronger returns on investment. "In the midst of such disruptions, we are providing solutions to farmers with steady supplies which help them improve yields and, despite bulk fertilizer disruptions, secure a stronger return on investment not just in the short term, but in the long term," said Bhukhanwala.
Industry shift towards efficiency
The fertilizer industry is moving towards innovation-led, sustainable agriculture. "Geopolitical developments have reinforced the need for technologies that improve resource efficiency and reduce dependence on imported agricultural inputs. NUE technologies, advanced formulations, and biological solutions are expected to play an increasingly important role in improving farm productivity while optimising input use," Bhukhanwala said. She noted that there is a global shift to reduce bulk nitrogen-based and phosphatic fertilizers, and awareness of this shift is driving international collaborations.
"We believe companies focused on innovation, sustainability, and farmer-centric solutions will drive the next phase of growth in global agriculture," said Bhukhanwala.
Strategic outlook and what this means for procurement teams
For SML, the current fiscal year will focus on expanding global presence, introducing innovative technologies and products, strengthening R&D capabilities, and investing in sustainable agricultural solutions that address evolving farmer needs worldwide. The US-Iran conflict highlighted the vulnerability of global supply chains, particularly for energy, shipping, and fertilizer raw materials. Procurement teams in the agricultural input sector should monitor geopolitical developments closely and consider strategies to reduce exposure to single-source dependencies on imported fertilizers and raw materials. Investing in domestic innovation and partnerships with companies like SML that offer NUE technologies can mitigate supply risk and improve cost stability over the long term.
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