InfoSAWIT, MUMBAI – A surge in global fertilizer demand triggered by geopolitical tensions in the Middle East has prompted India to increase urea imports to 2.5 million metric tons, opening export opportunities for Indonesia.
According to reports cited by InfoSAWIT from India Times on Wednesday (April 8, 2026), state-owned Indian Potash Ltd (IPL) has issued a tender to import 1.5 million tons of urea via western ports, with an additional 1 million tons planned through eastern regions.
This move aims to secure fertilizer supply ahead of India’s main planting season in June, which coincides with the monsoon period.
Global Supply Disruptions Pressure India’s Production
The import surge follows disruptions in global energy supply due to Middle East conflicts, which have directly affected India’s domestic urea production.
Natural gas shortages—an essential feedstock—have led to production declines of around 600,000 to 700,000 tons per month. Although supply conditions are gradually improving, imports remain necessary to bridge the gap.
India relies heavily on the Gulf region, which accounts for 20–30% of its urea imports and nearly 50% of its LNG supply, making the sector highly vulnerable to geopolitical instability.
At the same time, global urea availability has tightened due to supply disruptions, adding uncertainty to price movements.
“Global supply is limited due to disruptions in the Middle East. It will be interesting to see who participates in this tender, as it will strongly influence prices,” said an industry source.
Indonesia Targets Export Expansion
Amid these conditions, Indonesia is positioning itself as a potential supplier. Agriculture Minister Andi Amran Sulaiman revealed that at least three countries have expressed interest in importing urea from Indonesia.
“We will export urea fertilizer as Indonesia is a producer, and several countries have already made requests,” he said.
The government is currently negotiating to secure optimal pricing while ensuring that domestic supply remains unaffected. (T2)
