The Centre on Sunday said 15 vessels carrying fertilisers and key raw materials have safely crossed the Strait of Hormuz after it reopened on June 17, easing concerns over supplies after disruptions to maritime traffic during the recent conflict in West Asia
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In a statement, the department of fertilisers said the shipments, carrying urea, di-ammonium phosphate (DAP) and sulphur, are arriving at Indian ports. These ships had been stuck since the war began on February 28.
According to the release, the Centre has secured 19.76 million tonnes (mt) of fertilisers against an estimated Kharif requirement of 38.39 mt, equivalent to over 51% of the season’s projected demand, which it said would help ensure uninterrupted supplies during the ongoing sowing season. Last year, the stock with the ministry at this time stood at 33% of the total demand.
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Government cites planning
In the statement, Union chemicals and fertilisers minister JP Nadda said the government had ensured uninterrupted fertiliser supplies through advance planning, import diversification and close coordination with Indian missions abroad, despite disruptions to global supply chains.
According to the ministry, India sourced urea from countries including Oman, Malaysia, Vietnam, Nigeria, Russia, Egypt and Algeria, while DAP and NPK fertilisers were procured from suppliers such as Russia, Morocco, Jordan, Saudi Arabia and the US through alternative shipping routes.
Shipping through the Strait of Hormuz was disrupted following the escalation of conflict in West Asia in February, raising concerns over supplies of crude oil, liquefied natural gas and fertilisers passing through one of the world’s busiest maritime trade routes. Traffic has gradually resumed since mid-June after the US and Iran signed a memorandum of understanding.
Domestic production exceeds targets
The ministry also said natural gas supplies to fertiliser plants, which had temporarily fallen to about 65% during the crisis, have now been fully restored, enabling all domestic urea plants to operate at full capacity.
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It said India produced 7.2 mt of urea during April-June, exceeding the target of 6.8 mt, while DAP production reached 984,000 tonnes, surpassing the target of 861,000 tonnes.
The government said fertiliser availability remains comfortable, with stocks of key nutrients, including urea, DAP, muriate of potash (MOP), NPK and single super phosphate, standing at 16.3 mt as of July 2.
Freight costs remain elevated
According to the release, five more vessels from the straight of hormuz bound for India containing urea, DAP and sulphur are on their way.
Even as traffic resumes, industry executives say freight, insurance costs and supply chains may take over three months to fully normalise. Sanjiv Kanwar, managing director, Yara South Asia, noted that shipping-related costs remain elevated even as supply routes reopen, with war-risk insurance premiums on vessels transiting the Strait of Hormuz still close to 4%, compared with normal levels of around 0.15%.
