India's Unprecedented Urea Import Amidst Global Price Surge

India is set to make a massive import of 2.5 million metric tons of urea, government sources revealed, nearly doubling the previous price paid due to disruptions caused by the Iran conflict. This decisive move is expected to further tighten global supply and drive prices upward, already elevated due to Middle Eastern conflicts.

Indian Potash Ltd has committed to purchasing 1.5 million tons of urea at $935 per ton for west coast delivery, while an additional 1 million tons will be delivered to the east coast at $959 per ton. These deals, part of a larger tender aimed at securing a quarter of India's 2025 urea imports, reflect the nation's status as the world's largest urea importer.

As IPL received offers for 5.6 million tons, with prices as high as $1,136 per ton, they managed to secure the desired amount by persuading suppliers to match the lowest bid of $935 per ton. Shipments are set to depart by June 14, as higher import costs raise India's fertiliser subsidy burden, underscoring future challenges in securing global supplies.

(With inputs from agencies.)