The war in West Asia has an impact on the requirements of fertilizers by India, apart from oil and gas. Consequently, there is a record import of 2.5 million tons of urea through one tender, something which had not happened before. This huge import has doubled in terms of the price compared to what was seen in the previous month. This import accounts for almost 25% of India’s total annual imports of urea. Such a large order may result in tightening of supplies and increase in prices around the globe.

Amar Ujala Sources said Indian Potash Ltd. has agreed to purchase 1.5 million tons of urea at $935 per tonne for delivery to the west coast. It has also decided to purchase an additional 1 million tons of urea at $959 per tonne for delivery to the east coast.

Comparatively, prices in the previous tender were significantly lower. At that time, urea was purchased for the west coast at approximately $508 per tonne and for the east coast at $512 per tonne. This means the price has nearly doubled in just two months.

Indian Potash Ltd. received offers to supply 5.6 million tons of urea in the tender, of which only a small portion were at $935 per tonne. Most bids were around $1,000 per tonne, with some reaching as high as $1,136 per tonne. After matching the lowest bid from suppliers, the company agreed to purchase 2.5 million tons of urea.

According to the tender documents, this shipment must depart the loading port by June 14. Other buyers face increased difficulties: A Mumbai-based fertilizer industry official said, "India has secured its supply, but other buyers may have to struggle to obtain fertilizer. Producers have already committed to sending shipments to India."