China eased urea exports to India, aim to reduce tension; now 3 lakh tonnes can be purchased
Urea Exports: In 2023, half of China's urea exports were to India, but last year it stopped selling urea to all countries of the world. In June this year, China eased this ban but the ban on India was still in place. Now it has been eased.
China has eased urea exports as part of efforts to reduce tensions with India. Although no official statement has been issued, sources close to the matter say India can now import up to three lakh tonnes of urea from China. India is the world's largest importer of urea. China took this step to reduce tensions with India after US President Donald Trump announced a 50 percent tariff on Indian goods. Relations between India and China hit a low point following the violent clash in the Galwan Valley of Ladakh in June 2020. While relations have improved somewhat over the past few months, disputes remain on many issues.
In 2023, half of China's urea exports went to India, but last year, China stopped selling urea to all countries. In June this year, China eased this ban, but restrictions on India remained. Now they have been lifted. Although the 3 lakh tonne limit is not large, it is expected to increase gradually, potentially improving global supply and lowering prices.
India imported 57 lakh tonnes of urea during the year ending March 31, 2025—20 percent less than the previous year. Due to the ban, imports from China declined from 18.70 lakh tonnes in 2023-24 to nearly one lakh tonnes in 2024-25. Since most of India's economy still depends on agriculture, the country must import large quantities of fertilizers to meet domestic demand. The government also provides substantial subsidies on urea to prevent farmers from bearing excessive costs.
