Amid West Asia conflict squeeze, unravelling the real cost of India’s fertiliser imports, Pg8

Key Highlights:

• In 2025-26, India's fertilizer imports reached 28.2 million tonnes, valued at over $14.5 billion.
• Urea imports were 11.2 mt ($5.2 billion), DAP was 6.4 mt ($4.9 billion), and MOP was 3.7 mt ($1.3 billion).
• India's total fertilizer import bill, including raw materials, was $27.2 billion in 2025-26.
• The US-Iran conflict is expected to impact fertilizer prices in 2026-27.
• Urea and DAP import prices have risen to $935-959 per tonne, and $935 per tonne respectively.
• The dollar-rupee exchange rate is currently at 95.2, compared to 85.2 in May 2025.

Detailed Insights:

• India's domestic fertilizer production relies heavily on imported raw materials like LNG, phosphoric acid, and ammonia.
• In 2025-26, India imported 26 mt of LNG, with the fertilizer sector consuming 47.2%, valued at $6.3 billion.
• India imported 2.2 mt of phosphoric acid ($2.7 billion), 11.1 mt of rock phosphate ($1.9 billion), and 2.5 mt of ammonia ($1.1 billion).
• Rising global fertilizer prices due to geopolitical tensions and the depreciating rupee are increasing import costs.
• The current landed prices of imported fertilizers are nearing the highs seen during the Russia-Ukraine war.
• Without a resolution in the US-Iran negotiations, India's fertilizer import bill in 2026-27 could surpass the $33.4 billion record of 2022-23.

Key Concepts Involved:

• Di-ammonium Phosphate (DAP): A widely used complex fertilizer containing both nitrogen and phosphorus.
• Muriate of Potash (MOP): The most common potassium fertilizer used in agriculture.
• Liquefied Natural Gas (LNG): Natural gas that has been cooled to liquid form for ease of storage and transport.