India Seeks Urea Supplies from China Amid Gas Shortage Linked to Middle East Conflict

India has reportedly requested China to permit the export of certain urea cargoes as disruptions in global gas supplies linked to the Middle East conflict affect fertiliser production. Liquefied natural gas (LNG), a key input for urea manufacturing, has become less accessible due to the ongoing geopolitical tensions. 

The situation has led to operational constraints for some fertiliser plants in India, prompting authorities to explore additional sources of supply ahead of the agricultural planting season, as per The Economic Times report.

Gas Supply Disruptions Affect Fertiliser Production

The request comes as global energy supply chains face disruption due to the expanding conflict in the Middle East. Liquefied natural gas is an essential feedstock used in the production of nitrogen-based fertilisers such as urea.

Reduced availability of gas supplies has reportedly affected fertiliser manufacturers in India, with some plants reducing operations or temporarily halting production due to limited fuel availability.

India Approaches China for Additional Urea Supply

Indian officials have asked their counterparts in China to consider allowing the export of certain urea shipments. Discussions are said to be ongoing, though no final decision has been announced.

China is among the world’s largest producers of urea, but its exports are controlled through a quota system. While limited shipments were permitted in previous years, export allocations for 2026 have not yet been fully determined.

Rising Global Urea Prices

The uncertainty surrounding fertiliser production and supply has contributed to a rise in global urea prices. Recent data indicates that benchmark urea prices increased by around 21% during the early phase of the conflict.

The increase reflects concerns about potential supply shortages as countries dependent on imports attempt to secure adequate fertiliser stocks.

India’s Dependence on Imported Urea

India remains one of the largest importers of urea globally due to the scale of its agricultural sector. The country imports significant volumes each year to supplement domestic production.

According to official figures, India has imported around 9.8 million tonnes of urea during the current financial year ending March 31, with an additional 1.7 million tonnes expected to arrive in the coming months.

Possible Alternative Supply Sources

Apart from China, India may also look to other international suppliers if the need arises. Potential sources include Russia, Indonesia, Malaysia and Egypt.

Authorities are also expected to issue a fresh tender for urea imports in the coming weeks to ensure sufficient supplies before the start of the monsoon season, which typically marks the beginning of peak agricultural activity, the report added.

Impact of LNG Supply Constraints

The fertiliser sector in India receives a high priority in the country’s gas allocation system. However, LNG shortages have reduced the volume available to some fertiliser plants.

Recent developments include a reduction in fuel shipments from certain suppliers following the escalation of hostilities in the Middle East, which has added further pressure on fertiliser production capacity.

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Conclusion

India’s request to China highlights the broader impact of geopolitical tensions on global commodity supply chains. 

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