Wednesday, March 11
India has reportedly asked China to allow the sale of certain urea cargoes as the ongoing conflict in the Middle East disrupts natural gas supplies, threatening fertilizer production in the country, according to a Bloomberg report.
Officials from India have approached Chinese authorities seeking a relaxation of export restrictions on urea, as the escalating conflict in the Persian Gulf is impacting global supplies of liquefied natural gas (LNG) — a key feedstock used in fertilizer manufacturing.
Fertilizer production under pressure
The disruption in LNG availability has forced some fertilizer plants in India to temporarily shut down, people familiar with the matter told Bloomberg. Natural gas is a crucial input for producing urea, one of the most widely used fertilizers in India’s agricultural sector.
India is one of the world’s largest consumers of urea, and maintaining supply is critical during key agricultural cycles.
War impact spreading to global supply chains
The expanding conflict in the Middle East has disrupted shipping routes and energy supplies, particularly through the Persian Gulf, creating uncertainty in LNG markets.
Higher energy prices and limited gas availability are already affecting several energy-intensive industries globally, including fertilizer manufacturing.
India seeks supply stability
By requesting China to ease export curbs on urea shipments, Indian authorities are attempting to secure additional fertilizer supplies and stabilize domestic production, as the war-driven disruptions continue to ripple through global commodity markets.
The discussions are still at an early stage and it remains unclear whether China will adjust its export policy in response to India’s request.