India has issued a second global tender to import 70 lakh tonne of urea for the kharif season, despite a sharp rise in international prices. This decision comes as the government seeks to ensure adequate fertilizer supplies amid disruptions linked to the Middle East crisis.
Price Surge and Supply Challenges
The global price of urea has surged from $447 per tonne in February to $947 per tonne currently, according to Fertiliser Ministry Additional Secretary Aparna S Sharma. This price hike is attributed to ongoing geopolitical tensions in the Middle East.
- Current Urea Price: $947 per tonne
- February Urea Price: $447 per tonne
"We have also issued a global tender for 70 lakh tonne of urea, which is in progress. The price in the global tender is yet to be discovered," said Sharma.
Import and Production Data
India has already secured 25 lakh tonne of urea and 50 lakh tonne of di-ammonium phosphate (DAP) from sources outside the Strait of Hormuz. These shipments are expected to arrive during June and July.
| Product | Secured Quantity (lakh tonne) | Arrival Period |
|---|---|---|
| Urea | 25 | June-July |
| DAP | 50 | June-July |
Domestic fertilizer production during the West Asia crisis stood at 104.81 lakh tonne, while imports were 27.62 lakh tonne, bringing the total availability to approximately 132.43 lakh tonne.
Revised Demand Estimates
The Agriculture Ministry has revised fertilizer demand estimates downward, considering the El Niño outlook. Urea demand for the 2026-27 kharif season is now estimated at 194 lakh tonne, a reduction of 4 lakh tonne from earlier projections. Demand for DAP has been reduced by 6 lakh tonne to 60 lakh tonne.
Strategic Implications
The issuance of a second global tender underscores India's strategic approach to securing essential agricultural inputs amid volatile market conditions. This proactive measure aims to stabilize domestic supply and mitigate the impact of international disruptions on the agricultural sector.
