India’s fertiliser supplies for the upcoming Rabi season appear secure despite continuing disruptions around the Strait of Hormuz , with the country’s latest urea import tender attracting bids well above the required quantity, signalling easing supply concerns ahead of the winter sowing season, according to industry executives and analysts.
Rashtriya Chemicals and Fertilizers Ltd (RCF) on July 29 floated a tender to import 1.7 million tonnes of bulk urea— 1 million tonnes for the west coast and 0.7 million tonnes for the east coast — excluding suppliers from sanctioned countries. The bidding closed on August 11 and attracted bids for substantially more than the required quantity for September deliveries, according to market insiders cited by Swati Mathur, associate director, agribusiness consulting, S&P Global Commodity Insights.
Indian fertiliser companies have finalised long-term agreements with Saudi Arabian firms for annual supplies of about 3.1 million tonnes of diammonium phosphate (DAP), according to him.
A senior government official told HT that the department of fertilisers has expanded procurement efforts by exploring new sourcing opportunities through Indian missions abroad to reduce dependence on any single region. “These measures are aimed at strengthening the fertiliser supply chain, reducing vulnerabilities arising from global market disruptions and ensuring the uninterrupted availability of fertilisers in the country,” the official said. “The official outcome of the tender is still awaited, but market sources expect prices to settle at $390-400 per tonne CFR India,” Mathur said.
