Yara International’s Indian unit expects specialty fertiliser imports to rise 25% in 2025, reaching 135,000–140,000 tonnes.
Imports from January–September have already hit 100,000–120,000 tonnes.
Rising demand is driven by farmers shifting to high-value horticulture crops such as fruits and vegetables.
China’s tightening export restrictions threaten supply, but Yara has diversified sourcing.
About 70% of imports now come from Yara’s Norwegian plants, with the rest from Middle Eastern suppliers.
Norwegian fertiliser major Yara International's Indian unit anticipates a significant rise in specialty fertiliser imports this year and is on track to reach 140,000 tonnes annually, a 25% increase from last year, as it navigates China's tightening export restrictions.
Yara International's Indian unit has imported 100,000-120,000 tonnes of specialty fertilizers from January to September and is on track to touch 135,000-140,000 tonnes annually this year.
The company's specialty fertiliser imports in 2025 are set to rise, fueled by booming horticulture demand as farmers shift to profitable fruit and vegetable crops, Yara South Asia Managing Director Sanjeev Kanwar told PTI in an exclusive interview.
China's tightening export restrictions are set to take effect next month.
According to the Soluble Fertilizer Industry Association, the temporary resumption of Chinese specialty fertilizer exports has provided short-term relief, but this reprieve will be brief as Beijing plans to tighten export controls through increased inspections and consignment delays from next month.
Yara, which has been heavily reliant on imported specialty fertilisers with 70-80% sourced from China, is drawing on resilience built from past supply chain shocks, including COVID-19 and the Russia-Ukraine war, to counter the latest disruptions.
The company has diversified its supply chain, now sourcing 70% of its 120,000-130,000 tonnes of annual specialty fertiliser imports from its own Norwegian plants, notably calcium nitrate, and the remainder from Middle Eastern suppliers for products like sulphate of potash and potassium nitrates.
This shift has extended supply chains and increased working capital needs, but it has maintained stable prices for Indian farmers over the past six months.
"About 70% of specialty fertilisers are now flowing from our own Norwegian plants, including ramped-up calcium nitrate and the rest from Middle Eastern suppliers - extending supply chains but avoiding cost pass-through to India's 80% import-reliant market," Kanwar said.
Kanwar further noted that the company's specialty fertiliser imports are set to rise in 2025.
"It will be higher than last year. I think about 25%. Because the market is booming. The specialty fertiliser market is going up because farmers are getting more inclined towards fruits and vegetables, not only because it's good to grow, but it's also because it's more profitable," Kanwar said.
Yara is targeting 15-20% growth in its non-subsidised specialty fertilisers segment in the current fiscal year, even as overall revenue remains dependent on volatile government subsidies. The company's India operations recorded total revenue of ₹5,342 crore in the last fiscal year.
Kanwar said the specialty fertilisers segment remains the core focus area for sustainable growth. Despite global revenue declining to USD 13.93 billion in 2024, Yara maintains its target to triple its Indian business by 2026, driven by an 8-9% compound annual growth rate.
A global shortage of mono-ammonium phosphate (MAP), which is being diverted to electric vehicle battery production, poses a challenge; however, Yara has largely avoided supply shortages through strategic planning and alternative sourcing.
"We're looking at the Middle Eastern sources to step in... We're not really suffering from a lack of supplies, barring one particular product... That's mono-ammonium phosphate, which is also finding its way into the EV market... So MAP is being used in the production of EV batteries, as we understand. And that is causing a supply challenge for all of us," Kanwar said.
While no immediate plans exist for water-soluble fertiliser production in India, the company is exploring the setting up of a micronutrient manufacturing facility for global exports under the Make in India program, leveraging its Norwegian model, but regulatory hurdles, including 4-5 year product registration delays, pose a significant barrier.
"We could build a plant where we could produce micronutrients, not only for India, but also for the global markets. But that depends on the regulatory system. It takes almost four to five years to get a new fertiliser product registered," Kanwar said.
The company has ruled out major capacity expansion at its Babrala urea manufacturing facility, which has an annual capacity of 1.3 million tonnes, focusing instead on operational efficiency improvements.
"The specialty fertiliser business this year should grow about 15 to 20%. We are reaching out to farmers in a physical mode, conducting approximately 40,000 to 50,000 farmer meetings. We do almost 4,000 to 5,000 demonstrations to show the strength of the Yara crop program," Kanwar said.
Yara, which supplies 70% of India's fertiliser imports from Norway, had planned a manufacturing facility in China for India-bound water-soluble fertilisers but shelved it due to geopolitical tensions.
When asked about investing in proprietary technology or securing deals with countries like Belgium or Morocco to safeguard supply chains, Kanwar ruled out such moves.
"No, not at all. As I mentioned, 70% of our supplies are coming from our own production within the Yara system. And then for the balance 30%, we have long-term arrangements from various producers across the world," he said.
The company benefits from India's proactive subsidy framework, with no delays since 2019, ensuring stable urea prices and freeing up working capital to focus on timely specialty fertiliser imports.
