India's Record Urea Import Amidst Middle East Tensions

In an unprecedented move, India is set to import 2.5 million metric tons of urea, nearly doubling the price paid for the chemical just two months ago. This record-setting tender by Indian Potash Ltd aims to counteract the supply chain disruptions caused by ongoing Middle East tensions impacting global markets.

The procurement, which represents about a quarter of India's annual urea imports, is anticipated to tighten global supplies and drive up prices. Indian Potash Ltd has negotiated to buy 1.5 million tons of urea at $935 per ton for delivery on the west coast and an additional 1 million tons at $959 per ton for east coast delivery.

This move by India, the world's largest urea importer, follows a substantial tender issued earlier this month. It signals potential challenges for other buyers as India secures preferred pricing, pushing competitors to scramble for remaining global supplies.

(With inputs from agencies.)