India to Seek Fertilisers from Russia, Belarus, Morocco Amid Global Supply Risks — Here's Why

India is in talks to increase purchases from Russia, Belarus and Morocco amid Middle East tensions and ‌China's export curbs. The move could tighten supplies ahead of the summer planting season, government and industry sources told Reuters.

India imports fertilisers such as urea, diammonium phosphate (DAP) and muriate of potash, as well as liquefied natural gas, a key feedstock for urea production.

The Middle East accounts for ​roughly half of India's DAP and urea imports, with Saudi Arabia the largest DAP supplier and Oman the biggest ​urea supplier.

Although ​Indian companies import fertilisers individually to meet their own requirements, they negotiate collectively with overseas suppliers, as the sector is highly regulated and the government subsidises retail sales to farmers.

India has a diversified approach to fertiliser imports, foreign ministry spokesperson Randhir Jaiswal told Reuters, adding, "We continue to remain in touch ​with several countries in that regard."

The Department of Fertilisers has floated tenders in anticipation of the current situation, drawing strong responses, ​Jaiswal added.

India holds higher stocks of fertilisers, with urea and DAP inventories up 10.7% and 105%, respectively, from a year earlier, according to the ‌latest ⁠government data.

Usually, farmers start planting crops like rice, corn, cotton and oilseeds in June and July which makes the need for fertiliser go up. A lot of urea and DAP shipments come to India between March and May, before the summer season.

While India currently has higher stocks, sustained disruptions could strain supplies during peak demand months. According to Bloomberg, nearly 35% of global fertiliser raw materials pass through the Strait of Hormuz. This bottleneck is expected to drive North American fertiliser prices higher as global demand intensifies.

Why India Is Dependent on Fertiliser Imports

India is the world’s second-largest fertiliser consumer but domestic supply has not kept pace.

The country imports about 60% of its diammonium phosphate (DAP) requirement and roughly 15% of its urea and nitrogen, phosphorus and potassium (NPK)-based fertiliser demand, along with intermediates such as rock phosphate, phosphoric acid and potash.

Even urea relies on natural gas as feedstock, much of which is imported. This leaves domestic production exposed to global energy markets.

Diversifying import sources works as a precautionary step to ensure that farmers have uninterrupted access to essential nutrients.