China Strikes Again: Halts Key Fertiliser Exports to India After Rare Earth Curbs

After restricting exports of rare earth magnets, China has now stopped shipments of speciality fertilisers to India for the past two months, The Economic Times reported. These fertilisers are crucial for boosting yields of high-value crops, such as fruits and vegetables.

India imports about 80% of its supplies of these chemicals from China. According to the Indian embassy in Beijing, imports of such chemicals have significantly attributed to India's huge trade deficit with China. "While flourishing trade has brought with it all the advantages such as availability of low priced items in India, it has also led to the biggest single trade deficit we are running with any country," it said.

Shipments from factories are subject to inspections by the Chinese government. It's not been inspecting shipments meant for India, using various procedures to block exports without imposing an express ban, the report said.

Industry leaders said that local production has been unviable due to low volumes and a lack of technology. Alternative suppliers such as Jordan and Europe are being explored, but timely delivery remains a concern. This development follows China's earlier curbs on rare earth magnet exports and three tunnel boring machines, among other things.

Speciality fertilisers are also known as “enhanced-efficiency” or “value‑added” fertilisers, unlike bulk fertilisers like urea, DAP and MOP, offering tailored nutrient delivery. The Indian Speciality Fertiliser Market is segmented by Speciality Type (CRF, Liquid Fertiliser, SRF, Water-Soluble), by Application Mode (Fertigation, Foliar, Soil), and by Crop Type (Field Crops, Horticultural Crops, Turf & Ornamental), according to Mordor Intelligence. India's estimated speciality fertiliser market value stands at 1.27bn in 2025 and it is expected to reach $1.77bn by 2030. It i sgrowing at a CAGR 6.8%.

ET said that India typically imports 150,000-160,000 tonnes of speciality fertilisers in the June-December period. Top fertiliser companies such as Deepak Fertilizers, Paradeep Fertilizers and Nagarjuna Fertilizer Company operate in this segment as well.