First urea vessel for India has started via Hormuz, to reach the east coast in 7-9 days
Here's a story that connects geopolitics to your dinner plate, in a way. The first urea ship for India has finally started sailing through the Strait of Hormuz and should reach the east coast in seven to nine days, with seven more urea vessels to follow. So basically, sixteen fertiliser ships had been stuck since the West Asia war began in February, and this clears a supply worry before the kharif sowing season. Why care? India imports a lot of urea, so any shipping blockage threatens farmers. Bottom line for the exam, remember the Strait of Hormuz, urea imports, and India's fertiliser supply chain.
Out of 16 stranded vessels with fertilisers since the war in West Asia began in February, one urea vessel has started sailing via Strait of Hormuz and is expected to reach a port on east coast in 7-9 days. There are 7 more ships carrying urea that will also start heading to India in the next few days, industry sources said.
“The first vessel with urea, which was supposed to arrive around mid-March got stuck after the war. These urea are from the RCF’s import tender finalised by the Government in mid-February. Once it crosses Hormuz, other vessels too will start sailing,” said an industry source adding by July 15 all the 3 lakh tonnes (lt) imported urea could reach India.
As many as 16 ships carrying different fertilisers – 8 with 3.3 lt of urea, 4 with 2.6 lt DAP, 3 with 1.1 lt Sulphur and 1 ship with ammonia – were awaiting passage though the Strait of Hormuz to reach India.
The tender by public sector RCF in mid-February had received offers and awarded contracts for supply of 10 lt of imported urea at $508 (west coast delivery) and $512 (east coast delivery) for delivery by March 31. But the government had condoned the delay in receiving shipments due to war.
Fertiliser ministry’s joint secretary Bandana Preyashi had earlier said that since March 1 Indian companies have contracted to import 50 lt of fertilisers out of which 21.95 lt of urea and 4.18 lt of DAP have arrived in the country. She also had said that the government was processing the clearance for the import tender for 17 lt more, floated by NFL, which is one of the three canalising agencies for import of urea on government account.
After bids were opened by NFL on June 8, the lowest rates offered by traders/suppliers were - $449 per tonne for the west coast and $445 per tonne for the east coast delivery (CFR), which was much lower compared to the April-tender when the government agreed to import 25 lt of urea at $935 per tonne for the west coast and $959 per tonne for the east coast delivery.
Sources said that the government has issued approval to import about 18 lt of urea through NFL at the lowest rates. Trade sources also said that there is about $15/tonne further fall in imported urea price from the rates received on June 8, taking the current rate to June 2025 level when the average FOB rate was $395/tonne. However, some others said the drop is not that low, so far. But all admitted that import demand for urea has slowed down in Asia and already Australia is said to have announced it will not import in current crop season.
The government earlier said that India has imported a total of 39.36 lt of fertilisers and domestically produced 123.65 lt between March 1 and June 14 this year, which helped in bolstering availability.
India has secured urea supplies from Oman, Malaysia, Vietnam, Georgia, Nigeria, Russia, Finland, Egypt, Algeria, Turkey, and the Netherlands while DAP and complex (combination of N, P, K, S nutrients) fertilisers have been imported from Russia, Morocco, Egypt, USA, Jordan, South Korea, Tunisia and Saudi Arabia after the war.
India had a stock of 196.65 lt of fertilisers as of June 14, whereas it needed 281.12 lt more by September 30 to meet domestic demand. Already 102.78 lt of various chemical fertilisers have been sold between April 1 and June 14.