India Fertilizer Crisis Alert: Due to Iran’s occupation of Hormuz Strait, US-Israel war and Middle East supply shortage, there is a risk of 20–25% blockage in urea, DAP and potash imports in India! Will farmers’ crops and food security be safe? Know possible solutions and stock status.
Hormuz Strait Supply Risk: : Recent data and reports suggest that Iran’s temporary occupation and blockade of the Strait of Hormuz has increased the likelihood of disruption in India’s fertilizer supply chain by about 20–25 per cent. This has a direct impact on nitrogen fertilizers like urea, DAP and potash, which are very important for Indian farming.
How was India’s fertilizer supply affected?
The 12-day-long US-Israel war over Iran has shaken the supply chain of the Gulf region. Drone and asymmetric attacks have disrupted traditional shipment routes. The conflicts in the Middle East and Ukraine had already impacted India’s ability to feed its 147 crore population. The majority of India’s fertilizer imports come from countries like UAE, Qatar, Saudi Arabia and Oman. About 63% of urea and 32% of DAP comes to India from this region. About 42% of potash is imported from Saudi Arabia. All these shipments reach India through the Strait of Hormuz.
Effect of fertilizer blockage on farmers and economy
The impact of this 20–25% potential reduction is not limited to fertilisers. It may also impact the Indian economy dependent on agriculture, employment and small businesses. The first crop is sown in June–July, and if the supply of urea or DAP stops, agricultural production and food security may be at risk.
What are the solutions and alternatives?
India plans to increase its domestic production. “Make-in-India” urea production and 38 million tonne self-sufficiency target are making this possible. There are also import options available from Russia and China. However, natural gas shortages and disruptions in shipments to Gulf countries will remain a long-term concern.
What is the government’s stand and preparations?
The government has described the fertilizer stock as strong and safe. The Department of Fertilizers clarified that the reduction in imports from the Middle East will not affect the availability of urea and natural gas. According to analysts at S&P Global, before the elections the government will ensure that there is no resentment among the farmers and the crop is not affected due to shortage in supply.