NEWS: Conflict involving Iran + closure of Strait of Hormuz (since Feb 2026)--> Triggered global fertilizer supply shock

the Issue

• India highly dependent on Persian Gulf for: Fertilizer imports, LNG (for domestic urea production)à Disruption → supply shortage + price spike

Key Data

• Urea price: $510 → $950/tonne
• Kharif demand: 19.4 mt vs stock: 5.5 mt
• Production: 2.5 mt → 1.5 mt/month
• Gulf Cooperation Council supplies: 40% urea, 60% LNG

Importance

• Urea consumption: ~40 mt/year
• Crucial for rice + wheat → food security
• Overdependence due to subsidy → soil imbalance
• Kharif manageable , Rabi at high risk

Challenges

• Hormuz blockade → physical supply barrier
• Rising subsidy burden → fiscal stress
• High freight + insurance costs
• Domestic plants at 60–70% capacity
• Hoarding + black marketing risks

Steps Taken

• Diversification → Morocco, Jordan, Indonesia, Malaysia
• Tender by Indian Potash Limited (2.5 mt urea)
• Extended shipping timelines
• Alternatives: SSP, TSP

Way Forward

• Fertilizer fortification (Zn, Boron)
• Promote biostimulants
• Nano fertilizers (Nano Urea, Nano DAP)
• Microbes (PSB) for nutrient unlocking
• Diplomatic trade corridors

Conclusion

• West Asia crisis exposes India’s food–energy vulnerability link
• Need shift → efficient + sustainable fertilizers to secure future crops