India’s fertiliser supplies secure for Rabi season despite Hormuz disruptions

India's fertiliser supplies for the upcoming Rabi season remain on track despite ongoing disruptions around the Strait of Hormuz, as the country's latest urea import tender attracted bids well above the required quantity. Rashtriya Chemicals and Fertilizers Ltd (RCF) floated a tender on July 29 to import 1.7 million tonnes of bulk urea, and bidding that closed on August 11 drew substantially more supply than needed for September deliveries, according to market insiders.

India needs about 39 million tonnes of urea annually, producing roughly three-fourths domestically and importing the rest. The West Asia conflict raised concerns because around 70% of India's imported urea and nearly 60% of its LNG, the feedstock for domestic urea production, normally transit the Strait of Hormuz. India has already contracted over 5 million tonnes of urea this year, nearly two-thirds of expected imports, and has diversified sourcing through Indian missions abroad.

The fertiliser department has expanded procurement efforts to reduce regional dependence. Indian companies have also finalised long-term agreements with Saudi firms for annual supplies of about 3.1 million tonnes of diammonium phosphate. Market sources expect prices to settle at $390-400 per tonne CFR India, though the official tender outcome is still awaited.