India Lines Up 2.5Mn Tonnes of Urea Amid West Asia Supply Risks

The tender covers 1.5 million tonnes for the west coast and 1 million tonnes for the east coast, with supplies to be delivered in bulk agricultural grade

A farmer spreads fertiliser on an agricultural field
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Summary
Summary of this article
  • Indian Potash issues tender to import 2.5mn tonnes of urea.

  • Move aims to secure supply ahead of kharif sowing season.

  • West Asia disruptions and gas shortages have hit domestic output.

Indian Potash (IPL) has invited bids for the import of 2.5 million tonnes of granular or prilled urea, according to a tender notice dated April 4 published on the company website.

The tender covers 1.5 million tonnes for the west coast and 1 million tonnes for the east coast, with supplies to be delivered in bulk agricultural grade. Shipments are scheduled for loading by 14 June 2026, as per the document.

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Completed bids must be submitted by 11:30 IST on 15 April 2026, and will be opened the same day at 12:30 IST in the presence of bidders. The validity of bids will extend until 23 April 2026.

IPL buys urea for the government and it is the largest importer of fertiliser in the country and the second largest buyer of fertilisers on the international market.

The kharif sowing season — India's primary summer crop cycle — begins in the coming months, and urea is the single most used fertiliser in Indian agriculture. Any shortage during sowing directly hits crop yields and, by extension, food prices.

IPL regularly runs such tenders on the government's behalf. The government had previously designated IPL as a State Trading Enterprise for urea imports on government account, essentially making it the official vehicle for canalised urea imports. What makes this particular tender notable is the geopolitical backdrop: West Asia, which supplies a significant chunk of the world's urea and other fertilisers, is under strain, and India is moving early to lock in supplies before the situation worsens.

Amid disruptions emerging from conflict in West Asia, the country's urea production has suffered greatly, dropping to around 18 lakh tonnes in March from 24 lakh tonnes a month ago. It was mainly attributed to supply-side constraints in gas availability and scheduling of plant operations, Times of India reported.

A shortage of LNG due to the effective closure of the Strait of Hormuz forced some producers in India to shut plants last month.

However, the government maintained that India's fertiliser stock is sufficient. Aparna Sharma, Additional Secretary in the Fertilisers Department, said the current stock of soil nutrients stands at 180 lakh tonnes, about 22% higher than the same period last year.

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