Key facts
- India is promoting natural farming and anhydrous ammonia to mitigate urea supply issues caused by the Iran war.
- The closure of the Strait of Hormuz has caused urea import prices to surge from $510 to $950 per tonne.
- Domestic urea production is hampered by LNG shortages, impacting India's food security.
- India relies heavily on imports from GCC countries for urea and LNG, with the Strait of Hormuz being a critical chokepoint.
- The government is diversifying import sources and promoting alternative fertilizers like SSP and TSP.
The ongoing U.S.-Israeli war on Iran and the subsequent closure of the Strait of Hormuz have severely disrupted global fertilizer markets, particularly impacting India's urea supply. Urea import prices have surged dramatically, and domestic production is hampered by shortages of natural gas (LNG), a key feedstock. This situation poses a significant threat to India's food security, as urea is crucial for staple crops like rice and wheat. The Indian government is responding by promoting natural farming methods and approving the use of anhydrous ammonia, while also diversifying import sources and exploring alternative fertilizers.