Fertilizer Prices: Relief from Hormuz, but danger not averted for farmers, concern over fertilizer prices may increase

Amidst the ongoing tension in West Asia, there is relief news for India (Fertilizer Prices). Ships loaded with fertilizer and its raw materials have safely transited the Strait of Hormuz, allowing kharif The possibility of immediate crisis regarding supply in the season has reduced. However, rising prices in the international market have definitely created new concerns about the future.

The government says that at present there is sufficient stock of fertilizers available in the country, but the global situation and inflation of raw materials may increase the costs for farmers in the future. In such a situation, despite the current relief, the future situation is being continuously monitored.

15 ships heading towards India Fertilizer Prices

15 ships bound for India have safely crossed the Strait of Hormuz. Of these, eight ships are carrying about 3.32 lakh metric tonnes of urea, four ships are carrying about 2.57 lakh metric tonnes of DAP and three ships are bringing about 1.11 lakh metric tonnes of sulphur.

Sulfur is an important raw material for the production of phosphate based fertilizers. Apart from this, five more ships are also going to leave for India, which is expected to further strengthen the supply.

Why did the World Bank express concern?

According to the latest report of the World Bank, global urea prices may increase by about 60 percent in the year 2026. The main reasons behind this have been considered to be tension in West Asia, possible interruption in exports and rising prices of natural gas. The report also said prices could rise further if shipping is disrupted or trade restrictions increase.

Pressure on DAP and potash also

According to the report, DAP prices increased by more than 10 percent in April. The reasons for this have been said to be inflation of raw materials, limited supply and export policies of some countries.

It is estimated that in the year 2026, DAP prices may increase by about 6 percent (Fertilizer Prices). At the same time, the prices of Murate of Potash are estimated to increase by about 12 percent, although there is a possibility of some softening in them in 2027.

The government said that the stock is sufficient

According to the Fertilizer Ministry, there is currently a safe stock of 197.56 lakh metric tonnes of fertilizer in the country, which is more than 51 percent of the annual requirement. The estimated demand for the Kharif season from April to September is 383.9 lakh tonnes, while till July 2, 163.65 lakh tonnes of fertilizer was available. This includes adequate stock of Urea, DAP, Potash, Complex Manure and Single Super Phosphate.

Domestic production also increased

According to the government, the production of urea and DAP in the first quarter of the current financial year has been more than the set target. Besides, a good increase has also been recorded in the production of complex fertilizer and single super phosphate. The supply of natural gas has also become normal, which has strengthened domestic production.

Importing from many countries

India is importing urea from countries like Oman, Russia, Egypt, Nigeria and Malaysia (Fertilizer Prices). At the same time, supply of DAP and other fertilizers has been ensured from many countries including Russia, Morocco, America, Jordan, Saudi Arabia and South Korea.

At present the government is confident that there will be no shortage of fertilizers in the Kharif season. However, the ongoing uncertainty in the global market and the situation in West Asia may pose a challenge to both prices and supply in the times to come.