In a major boost to soil nutrient supplies, 15 vessels carrying over 0.7 million tonne (MT) of fertiliser variant and raw materials – urea, di-ammonium phosphate (DAP) and sulphur – have crossed the Strait of Hormuz and is expected to reach India ports soon.
Out of these 15 vessels, 8 ships are carrying 0.33 MT (urea), four have 0.25 MT of DAP and three vessels are loaded with 0.11 MT of sulphur. Sources told FE that five more ships will soon exit the strait which are carrying ammonia, sulphur and urea which is expected to boost the government’s fertiliser stocks.
This follows four vessels carrying 0.18 MT of fertilisers of variants crossing the Strait, following its reopening around June 22, 2026. The closure of the Strait of Hormuz since February has led to severe disruption in supplies of raw materials like LNG and finished products of soil nutrients.
Earlier 50% of LNG used in domestic urea manufacturing was imported from Qatar, under a long-term agreement, which has been disrupted since the west Asia crisis.
Import Diversification
Officials said that while the government does not foresee any fertiliser shortage in the ongoing kharif season, inventories remain comfortable due to diversification of imports and higher domestic production.
As part of diversification of imports, the official of the department said urea recently stated that currently soil nutrients are sourced from Oman, Malaysia, Vietnam, Georgia, Nigeria, Russia, Finland, Egypt, Algeria, Turkey, and the Netherlands.
Import of other variants DAP and NPKs were procured from Russia, Morocco, Egypt, USA, Jordan, South Korea, Tunisia, and Saudi Arabia via the Red Sea.
The current government stock of fertiliser is around 16.33 MT, while farmers have purchased over 16 MT of soil nutrients keeping in to consideration the requirement of fertiliser for ongoing kharif season.
Price Drop
Meanwhile, the government is likely to reassess fertiliser subsidy requirements for the current fiscal year after a sharp decline in urea prices since last one month.
The National Fertilizers , one of the agencies responsible for fertiliser imports, last month received bids with a landed cost of $444.9-$449.3 per tonne for importing 1.7 MT of urea. The prices are less than half the contracted rates of $935-$959 per tonne discovered in an earlier tender floated by Indian Potash for the import of 2.5 MT of urea.
In FY26, India produced 52 MT of fertilisers and consumed 72.5 MT of soil nutrients.