64 LT urea, 19 LT other fertilisers: India boosts import plans as global prices double amid Middle East crisis
India is lining up major fertiliser imports ahead of the upcoming kharif season as global prices have almost doubled due the ongoing Middle East crisis, pushing import bill higher.
The government on Monday said that it plans to import 64 lakh tonnes of urea and 19 lakh tonnes of other fertilisers, even as domestic availability remains comfortable.
Speaking at an inter ministerial briefing, Aparna S Sharma, additional secretary in the department of fertilisers, assured that despite the spike in global costs, farmers will not see any change in retail prices of key nutrients and that there is sufficient supply across the country for the season.
"MRP of fertilisers like urea and Di Ammonium Phosphate (DAP) remain the same. There has been no change," she said.
Urea will continue to be sold at Rs 266.50 per 45 kg bag, while DAP is priced at Rs 1,350 per 50 kg bag.
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Since the crisis began, 9.4 lakh tonnes of urea have reached Indian shores. Another 13.07 lakh tonnes were received through a global tender issued in February, while 25 lakh tonnes more have been tendered and are expected to arrive in May.
"Most of the imports are out of the Strait of Hormuz. We are very much sure that we will be getting the supplies on time," Sharma said.
Meanwhile on the production side, domestic urea output had dipped in March due to force majeure on gas supplies, which brought plant utilisation down to 60–65%. The government has since stepped in to secure gas at higher prices to stabilise operations.
"Now we have taken measures to import gas even at a higher cost.
Availability of gas for urea units, which earlier was 60-65%, is now 97%. So our urea production has been very good after that," she said.
Following these measures, domestic production has improved, with post-crisis urea output reaching 35.4 lakh tonnes.
To ensure adequate supplies during peak demand, the government has also floated a global tender to import 19 lakh tonnes of non-urea fertilisers. This includes 12 lakh tonnes of DAP, 4 lakh tonnes of Triple Superphosphate (TSP), and 3 lakh tonnes of Ammonium Sulphate.
A decision on further imports will be taken after assessing how domestic production and demand evolve.
Supply data presented at the briefing indicated a strong position. Between April 1 and April 26, urea availability stood at 71.58 lakh tonnes against a requirement of 18.17 lakh tonnes. DAP availability was 22.35 lakh tonnes compared with a requirement of 5.90 lakh tonnes. Stocks of Muriate of Potash (MoP) were at 12.46 lakh tonnes, while Single Super Phosphate (SSP) stood at 26.26 lakh tonnes.
For the 2026 kharif season, total fertiliser demand has been estimated at 390.54 lakh tonnes. Against this, the country already holds an opening stock of 190.21 lakh tonnes, nearly 49 per cent of the requirement.
"There is a strong supply situation for the kharif season. No shortages have been reported so far," Sharma said.
The department of fertilisers said the overall supply position remains “strong, stable and well managed”, with availability across all major fertilisers exceeding demand.
Customs Bulletin:
Exports of Ammonium Sulfate Masquerading as Urea Seized
Date: March–April 2026 (Spring
Farming Control Period), Qingdao Customs (including Huangdao and Rizhao) consecutively seized multiple batches of export containers that were misdeclared as "ammonium sulfate" but actually contained urea.
·Methods: Declared as HS code 3102210000 (ammonium sulfate, which requires no quota and no mandatory inspection), but actually loaded with urea (HS code 3102100090, which requires a quota, mandatory inspection, and a license; approvals were virtually suspended in March and April); repackaging, affixing fake labels, and forging quality inspection certificates stating a nitrogen content of 21% (actual urea nitrogen content was 46%)
Scale: Individual shipments typically consist of 4–8 containers, totaling 200–400 tons per shipment. Over 1,500 tons have been seized to date, with all shipments detained, cases filed, and full-chain investigations initiated.
Seizure Locations: Huangdao Qianwan Port and Rizhao Port (key hubs for fertilizer exports in Shandong). Customs authorities conduct 100% container inspections, sampling, and laboratory nitrogen/sulfur content testing on fertilizer shipments—every inspection yields positive results!
Focus on Urea on April 28: Domestic urea plant quotations remain stable, with manufacturers shipping smoothly. Resources continue to be primarily purchased by downstream compound fertilizer plants for their essential needs. Yesterday, prices in some regions showed slight weakness, but as the futures prices strengthened again, market sentiment was boosted. The previous trading day’s main contract price of urea futures surged once more, peaking at 2082 yuan/ton, reaching its highest point since July 2024. The basis between futures and spot prices widened further. At the domestic price level, today’s quotations from urea plants in Hebei, Shandong, and Henan remained stable at 1810-1840 yuan/ton. In terms of futures, the main contract 2609 of urea futures closed broadly higher the previous day (April 27), with the opening price at 2019 yuan/ton and the closing price at 2074 yuan/ton. This represented a rise of 61 yuan/ton from the previous trading day’s settlement price. The intra-day price range was 2006-2082 yuan/ton. The daily average price was 2032 yuan/ton, and the daily settlement price was 2032yuan/ton. The daily increase in open interest was 34,979 contracts, with a total volume of 491,300 contracts and a holding of 395,519 contracts. Today’s (April 28) main contract 2609 opened at 2060 yuan/ton.
We are hearing same QLD low soil moisture not enough for desi crop this year
But at the same time VIC and SA have sufficient soil moisture where we can see similar lentils crop compared with last year .
We are seeing acres change in Australia as well, but pretty hard to get a handle on where they will end up, as it is pretty fluid. A lot more lentils is a surety. In Northern NSW and QLD a lot of people thinkign about parking their equipment for the year as they have no rainfall.
Fuel costs for three manufacturers in Henan to transport their goods to the delivery warehouse.
Xinxiang Yanhua to Puyang Huangpu and Wanzhuang Anyang – 38 yuan/ton or so.
The factory price of Dahua is 10 yuan higher. To Puyang Huangfu and Wanzhuang in Anyang, it is around 30 yuan/ton.
Anhui Zhongying to Puyang Huangpu and Wanzhuang Warehouse: 30 yuan/ton or so.
The factory-issued price limit for products from Henan Province is 1,810 yuan/ton. The storage fee for warehouses is 0.4 yuan per ton per day. The costs for moving goods in and out of warehouses are 26-30 yuan/ton, and the inspection fee for quality control and settlement is 1,100 yuan per batch. Travel expenses for quality inspectors are additional.
Morning. Following the conclusion of IPL tender, mkts drifted slightly in thin liquidity last week. On Fri, Int'l saw Brazil AS trade $265cfr (Jun), while Apr Nola phys traded down to $650. Mkts framed close of week:
AG
May $760//$815
_[May traded $815 last week]_
Jun $670//$750
Cfr Brazil
May $735//$757
_[May traded $785 l/w]_
Jun $660//$735
Jul $610//$705
Aug $600//$690
Brazil Amsul
May $255//$280
Jun $260//$270 – traded $265 Fri
Nola
Phys: APR traded $660, $655, $650
Paper:
May $615//$665
Jun $590//$635
Jul $530//$575
Aug $530//$575
Q3 traded $582 in 500st
UAN Nola
May $500//$535
DAP Nola
Physical: loaded traded $735
May $740//$775
June $700//$765
MAP Brazil
Jun $875//$920
Jul $920 Offer
LCB Sulphur Market Analysis
27 April 2026
Market Overview
The global sulphur market has shifted from disruption to outright structural breakdown. The situation is no longer cyclical or logistics-driven; it is now defined by the effective closure of a critical global supply artery and the resulting contraction across downstream industries.
Maritime Supply Shock
The closure of the Strait of Hormuz has moved beyond disruption into a state of operational standstill.
No commercial vessel transits were recorded on 26 April, marking a complete halt in sulphur flows through the region.
The waterway is now being treated as a closed zone rather than a contested one, with no viable commercial passage.
Market consensus has shifted away from expectations of a near-term reopening, indicating a prolonged supply dislocation.
This represents a fundamental break in global sulphur logistics, particularly for flows originating from the Middle East.
Industrial Impact
The supply shock is now feeding directly into industrial output, moving the market into a phase of structural contraction.
Metals Processing (Nickel / HPAL):
Indonesian producers reliant on Middle Eastern sulphur feedstock are actively rationing supply.
Production cuts are already being implemented to preserve remaining inventories.
Fertiliser & Agriculture
Export restrictions from key producers, combined with the Hormuz shutdown, have created a significant global deficit.
Tight sulphur availability is pushing up phosphate fertiliser costs, with downstream implications for agricultural pricing later in the year.
The impact is no longer confined to commodity markets and is now feeding into broader industrial and food supply chains.
Trade Flow Reconfiguration
With Gulf-origin supply effectively offline, the market is undergoing a forced structural shift:
Procurement strategies are rapidly localising, focusing on domestic or regional supply chains.
Alternative sourcing methods, including synthetic substitutes and inland logistics routes, are gaining traction.
Traditional spot procurement in the Gulf is no longer viable under current conditions.
This marks a transition from globalised trade flows to fragmented, regionally constrained supply networks.
Market Positioning
The sulphur market has entered a phase best characterised as stagnation rather than squeeze.
Supply is not simply tight; it is structurally impaired.
Price discovery is increasingly distorted by the absence of physical liquidity.
Industrial demand is beginning to adjust downward in response to constrained availability.
Closing View
The current environment reflects a systemic disruption to sulphur supply rather than a temporary imbalance. With the principal export corridor effectively closed and downstream industries already adjusting output, the market is now defined by prolonged scarcity and regionalisation of supply.
Morning Magnus
Hope you’re doing well.
Iranian producers announced $770/mt as official price this week.
Shiraz sold 80,000 Mt at $770/mt granular urea for first half of May shipment.
MIS and KPIC will issues sales tender for a 30,000 Mt granular urea separately.
Production:
Pardis : Offline
Shiraz (Prilled) : Offline
Shiraz (Granular): Online
KPIC: Online
Lordegan: Offline
MIS : Online
Khorasan: Online
Razi: Offline
Hengam: Offline
Regarding the spot market, the national urea market price has remained stable. Urea plant quotations have maintained the guidance level, and transactions have been smooth. Compound fertilizers continue to play a crucial role in the demand side. However, there have been negative signals in industries such as melamine and plywood, making it challenging for market transaction prices to continue rising. Regarding urea futures, the market has been experiencing fluctuations. The continued upward pressure on the market comes from policymakers’ disapproval of high-priced urea. The logic of urea futures trading more reflects the value of the urea market rather than the value dictated by policy guidance. Export news and controls on exports have significantly influenced market sentiment.
Views on the future.
The financial game involving urea futures is quite pronounced, with both the bulls and bears poised for a decisive confrontation just before dawn. There is a contradiction between policy intentions and the atmosphere in the futures market; one can adapt to the market’s trends accordingly.
AngloAmerican is selling their product polyhilate around @1950rmb/mt in China market via they selling here through 3/4 agent- like Beifeng,Sinoargi and a Guangdong company.
There are rumors: At a meeting in Beijing, food security was highlighted as a crucial foundation for national security. To firmly establish a robust defense line for national food security, relevant departments will implement strict regulations and control over classified information related to national grain reserves, rigorously investigate and penalize violations of laws that involve the unauthorized disclosure of data related to the reserves, and conduct thorough monitoring and regulation throughout the entire process. Additionally, in order to effectively safeguard the security and stable operation of China’s soybean industry, it is strictly forbidden to disseminate unverified false information about important agricultural production data such as soybean planting areas. It is essential to resolutely eliminate misleading false or partial statements that could mislead public opinion and work together to protect the overall stability of China’s grain and oilseed industry.
Recently, the Urea Futures Contract 2609 has experienced a significant price surge, with the differential between futures and spot prices widening to over 200 yuan/ton. The divergence between the two markets is evident. Against the backdrop of the overall market being constrained by guidance prices and with the trading focus relatively stable, signs of market-driven funding have become prominent, and rumors of irregular off-exchange transactions have intensified, boosting market speculation sentiment. The industry association has once again made clear its stance: the current domestic Urea spot price has not significantly fallen below the guidance level, and the market as a whole is relatively hot, making it impractical to open up exports at this time. It emphasized the need to strengthen self-discipline and ensure the supply of agricultural fertilizers. The China Nitrogen Fertilizer Industry Association has published information on key enterprises’ production, sales, and pricing to enhance market transparency. It also stated that any instances of hoarding or abnormal pricing would be subject to feedback and verification. According to market reports, exchanges have begun issuing warnings and conducting compliance inquiries for certain bullish funds, requiring written explanations on the current state of the spot market, trading plans for the 2609 contract, and emphasizing that Urea, as a key commodity for price stabilization, must be involved in a rational and compliant manner. Overall, the policy stance has become clearer, and regulatory signals have intensified. The elevated differential structure in the short term faces pressure to be corrected, potentially leading the market into a phase of cooling sentiment and rebalancing the basis.
IPL has also issued an import tender for 1.2 million tonnes of DAP and 400,000 tonnes of GTSP.
LONDON (ICIS)–In India, IPL has issued an import tender for 300,000 tonnes of caprolactam grade ammonium sulphate (AS), for shipment by 15 August. The tender closes on 4 May, with offers to be valid until 8 May.
The tender announcement is an unprecedented move, as the country is seeking to prevent a urea shortage by encouraging farmers to switch towards ammonium sulphate.