News and Articles

• Fifteen of 20 India-bound fertilizer ships crossed the Strait of Hormuz.
• Domestic urea output reached 71.6 lakh tonnes from April to June.
• India beat urea production targets for three straight months.
• Urea sourcing was arranged from multiple supplier countries.
• Procurement teams should still track vessel arrivals and local allocation.

India entered the first week of July with lower near-term urea supply risk after 15 of 20 India-bound fertilizer vessels that had been stuck in the Persian Gulf crossed the Strait of Hormuz. The development matters for fertilizer procurement because the cargo movement came during the kharif crop season, when Indian demand for nitrogen fertilizers is active and delays can tighten local availability.

The shipping update was paired with stronger domestic production data. India produced 71.6 lakh tonnes of urea from April to June, above the 67.9 lakh tonne target for the three-month period. Monthly output also beat targets in April, May and June, giving the market a production buffer alongside imports.

Request the Latest Urea Prices Data - Access Price Insights Now

For buyers, the main takeaway is that India’s immediate supply picture has improved, but route risk has not fully disappeared. Five fertilizer ships were still not reported as cleared in the July 6 update, so procurement teams still need to monitor vessel arrivals, port handling, supplier allocations and regional stock movement before assuming full normalization.

India also widened its sourcing base. Urea supplies were arranged from Oman, Malaysia, Vietnam, Georgia, Nigeria, Russia, Finland, Egypt, Algeria, Turkiye and the Netherlands. That wider origin mix reduces dependence on a narrow supplier group, but it can also bring different delivery windows, freight costs and documentation requirements.

The development supports near-term availability for Indian farmers and lowers the chance of panic buying by distributors. For industrial buyers using urea in resins, chemicals or technical applications, the same supply improvement may reduce pressure in local spot procurement, provided agricultural allocation does not absorb most incremental supply during the season.