India, a major importer of urea, is witnessing a rise in fertiliser procurement costs due to ongoing geopolitical tensions affecting global supply chains. Disruptions in key exporting regions have led to higher benchmark prices, influencing the country’s latest import decisions.
This development comes at a critical time as agricultural demand typically increases ahead of the monsoon cropping cycle.
Indian Potash Limited is set to procure approximately 2.5 million tonnes of urea for government supply.
Of this, around 1.5 million tonnes will be delivered to India’s west coast at about $935 per tonne, while 1 million tonnes is expected to arrive on the east coast at roughly $959 per tonne.
The agreed rates indicate a substantial increase compared to earlier procurement levels. Before the escalation of tensions in the Middle East, urea prices were estimated at around $490 per tonne.
The current pricing reflects an increase of nearly 90%, highlighting the impact of supply disruptions and shifting global trade dynamics.
The rise in fertiliser prices is linked to instability in the Middle East, a key supplier region for India. The recent conflict involving the United States, Israel and Iran has contributed to tightening supply conditions and increased uncertainty in global markets.
As a result, exporters have adjusted pricing to reflect higher risk and logistical constraints.
The recent tender attracted participation from more than two dozen suppliers, with quoted prices ranging between $935 and $1,136 per tonne.
While the tender for 2.5 million tonnes has not yet been formally finalised, it is expected to be confirmed shortly, based on market indications.
The procurement comes at a crucial juncture, as India prepares for the sowing season of key crops such as rice, maize and soybeans. Adequate fertiliser availability is essential during this period to support agricultural output.
Higher input costs, however, may have implications for subsidy requirements and overall farm economics.
Read More: US-Iran Ceasefire Boosts Fertiliser Stocks; Coromandel, RCF Share Price Lead Gains.
India’s latest urea import decision reflects the influence of global geopolitical factors on essential commodity markets. With prices significantly higher than earlier levels, the situation underscores the importance of supply stability, particularly during critical agricultural cycles.
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Published on: Apr 23, 2026, 2:17 PM IST
Neha Dubey
Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.
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