India has issued a second global tender to import 7 million tonnes of urea for the kharif sowing season, amid West Asia tensions that lifted urea prices from $447 to $947 per tonne since February. The government has already secured non-Hormuz shipments of 2.5mt urea and 5mt DAP for June-July arrivals.
The government of India has launched its 2nd global tender of the season to import 7 million tonnes of urea, according to media reports citing ministry officials, as escalating geopolitical conflict in West Asia drove global urea prices from $447 per tonne in February to $947 per tonne.
India has already secured 2.5 million tonnes of urea and 5 million tonnes of di-ammonium phosphate (DAP) through shipping routes bypassing the volatile Strait of Hormuz to safeguard arrivals for June and July. Domestic output during the crisis reached 10.48 million tonnes, supplemented by 2.76 million tonnes of imports. Factoring in an El Niño climate outlook, the agricultural ministry has lowered expected urea consumption to 19.4 million tonnes and DAP demand to 6 million tonnes after provincial consultations.
This development matters because the kharif season accounts for a substantial portion of India’s annual agricultural output, and the tender will serve as a critical price-discovery mechanism during an inflationary period for global commodity traders and financial markets. The reliance on non-Hormuz trade pathways signals a broader structural shift in maritime logistics, forcing chemical and agricultural supply chains to adjust to prolonged geopolitical risks in major shipping lanes. Industries impacted include fertilizer manufacturing, maritime freight, and commodity trading. Regional stakeholders include Indian farmers (who are likely shielded from direct price shocks by state subsidies), global urea suppliers, and shipping lines operating alternative routes.
For investors and agribusinesses, the tender highlights elevated import costs and a strategic pivot toward supply chain diversification away from the Strait of Hormuz. The Indian government’s Ministry of Chemicals and Fertilizers oversees urea procurement and subsidy programs. The Strait of Hormuz is a strategically critical shipping chokepoint between the Persian Gulf and the Gulf of Oman.
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