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Fertilizer Shock: India Buys 2.5 Million Tons of Urea at Double Price as West Asia War Disrupts Supply
Iran War: After India's energy supply has been affected due to tensions in West Asia, India's fertilizer supply has also been affected. The government has decided to import urea at a record level in a single tender, at nearly double the price of the previous deal. Read the report:
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.
