India seeks 1.7 million tonnes urea imports as West Asia conflict disrupts global supply

New Delhi: India has floated a major global tender to import around 1.7 million tonnes of urea as escalating tensions and conflict in West Asia begin affecting fertilizer supplies and shipping movements in the international market.

State-run MMTC Ltd, which handles fertilizer imports on behalf of the government, invited bids on Wednesday for the purchase of prilled and granular urea. The tender is aimed at ensuring adequate fertilizer availability ahead of the kharif sowing season, when demand for crop nutrients rises sharply across the country.

According to trade and industry sources, the conflict in parts of West Asia has triggered uncertainty in global fertilizer trade, especially because the region accounts for a significant share of the world’s urea exports. Concerns over shipping disruptions, insurance costs, and possible delays in cargo movement have already started impacting market sentiment.

Sources said the tender seeks deliveries at both eastern and western Indian ports, with shipments expected to arrive by mid-July. The government is aiming to build sufficient stocks before peak agricultural demand intensifies during the monsoon season.

India is one of the world’s largest consumers and importers of urea. Although domestic production has increased in recent years due to new fertilizer plants and revival projects, local output still falls short of total demand, making imports essential for maintaining supply stability.

Industry experts said international urea prices have shown volatility in recent weeks amid geopolitical tensions and tightening supplies from major exporting countries. The latest Indian buying tender is likely to influence global benchmark prices because of the large quantity involved.

“The market is already nervous because of supply risks from the Gulf region. A purchase of this scale from India may further support prices in the short term,” a fertilizer trade analyst said.

The government has repeatedly assured that there will be no shortage of fertilizers for farmers during the upcoming cropping season. Officials are closely monitoring stock positions and import arrivals to ensure timely availability across states.

India’s fertilizer demand generally rises significantly before and during the kharif season, particularly for crops such as paddy, maize, sugarcane, cotton, and pulses. Urea remains the most widely used nitrogen-based fertilizer in Indian agriculture.

The tender comes at a time when global commodity markets are also reacting to rising crude oil prices and freight uncertainties linked to geopolitical developments in West Asia. Analysts believe any prolonged disruption in the region could further tighten fertilizer supplies and increase import costs for major consuming countries like India.

Bids for the tender are expected to be opened in the coming days, with contracts likely to be awarded soon to ensure timely shipment and distribution before peak farm demand begins.