Iran’s Hormuz Chokehold Raises Fertiliser Supply Concerns For India Amid War

The ongoing conflict involving Iran and the informal blockade around the Strait of Hormuz is raising fresh concerns for India — not just about oil and gas, but also about the supply of fertilisers crucial for agriculture.

Experts warn that India could face a 20–25% exposure to fertiliser supply disruptions, as shipments from several Gulf countries pass through the narrow shipping corridor.

Why Hormuz Matters For India

The Strait of Hormuz is one of the world’s most important shipping routes. Along with crude oil and LNG, fertiliser shipments from Gulf nations also pass through this corridor.

India imports large volumes of fertilisers from countries including:

• United Arab Emirates
• Qatar
• Saudi Arabia
• Oman

According to available data:

• 63% of India’s nitrogen fertiliser imports (including urea and ammonia) come from these nations.
• 32% of DAP (Di-Ammonium Phosphate) imports originate from the region.
• Saudi Arabia alone supplies about 42% of India’s potash imports.

Although Iran’s direct share in fertiliser exports to India is relatively small, disruptions to shipping routes could still delay supplies from other Gulf producers.

Impact On India’s Agriculture

The risk comes at a critical time for India, which supports around 147 crore people and has an economy heavily dependent on agriculture.

Fertiliser demand peaks during the Kharif and Rabi crop seasons, and the upcoming Kharif sowing period in June–July could be affected if supplies slow or prices rise.

India’s fertiliser imports are expected to reach a record $18 billion in FY26, with urea accounting for about 61% of imports, largely because its price is government-controlled.

Any disruption in supply chains could lead to:

• Higher fertiliser prices
• Increased shipping and insurance costs
• Potential pressure on farmers and food production

Possible Alternatives

To reduce dependence on Gulf routes, India may consider increasing imports from:

• Russia
• China

Both sources could bypass the Hormuz route. India also imports fertilisers from countries such as Nigeria, Uzbekistan and Indonesia, though their share remains relatively small.

Domestic Production Challenges

Boosting domestic fertiliser production is seen as a long-term solution. India has set a target of achieving around 38 million tonnes of urea production to improve self-sufficiency.

However, this effort faces another challenge: natural gas supply, a key ingredient in fertiliser manufacturing.

India’s primary gas suppliers — Qatar, UAE and Oman — have reportedly reduced supplies amid the ongoing conflict, with reports suggesting cuts of up to 30%.

Government Response

Despite the risks, the government has reassured that fertiliser stocks remain adequate.

The Department of Fertilisers recently stated that supplies of urea and other fertilisers remain “robust and secure.”

Analysts believe the government is likely to pay higher prices if necessary to ensure adequate fertiliser availability, especially with elections approaching and the need to protect farmers from supply shocks.

News Source : Information for this article was gathered from a variety of reliable news outlets.