India’s fertiliser supplies for the upcoming Rabi season are expected to be stable, despite ongoing disruptions in the Strait of Hormuz. The country’s latest urea import tender received bids significantly exceeding the required quantity, indicating a reduction in supply concerns as the winter sowing season approaches. Industry executives and analysts have noted that this development bodes well for farmers preparing for the season ahead.
Rashtriya Chemicals and Fertilizers Ltd (RCF) on July 29 floated a tender to import 1.7 million tonnes of bulk urea— 1 million tonnes for the west coast and 0.7 million tonnes for the east coast — excluding suppliers from sanctioned countries. The bidding closed on August 11 and attracted bids for substantially more than the required quantity for September deliveries, according to market insiders cited by Swati Mathur, associate director, agribusiness consulting, S&P Global Commodity Insights.
Indian fertiliser companies have finalised long-term agreements with Saudi Arabian firms for annual supplies of about 3.1 million tonnes of diammonium phosphate (DAP), according to him.
A senior government official told HT that the department of fertilisers has expanded procurement efforts by exploring new sourcing opportunities through Indian missions abroad to reduce dependence on any single region. “These measures are aimed at strengthening the fertiliser supply chain, reducing vulnerabilities arising from global market disruptions and ensuring the uninterrupted availability of fertilisers in the country,” the official said. “The official outcome of the tender is still awaited, but market sources expect prices to settle at $390-400 per tonne CFR India,” Mathur said.
