India purchased a record volume of fertilizers, leaving other importers with more expensive supplies

India has purchased a record 2.5 million tonnes of urea in a tender, according to Reuters citing government sources. The purchase price is roughly twice the pre-war level due to disruptions in global supply chains amid geopolitical tensions and the start of the planting season in key agricultural regions.

Indian Potash Ltd (IPL) agreed to buy 1.5 million tonnes of urea at $935/ton for delivery to the western coast and another 1 million tonnes at $959/ton for the eastern coast. Analysts estimate that Russia could become the main supplier with around 0.8 million tonnes, although official tender results have not yet been released.

India is the world’s largest importer of urea, and this tender could effectively absorb a significant share of June global shipments, sharply tightening global availability. This increases price pressure and intensifies competition among other buyers.

Analysts note that such demand concentration from a single buyer is already pushing fertilizer prices higher, with some segments nearly doubling amid Middle East conflicts and logistics risks.

As a result, other importers may face limited availability and be forced to purchase urea at significantly higher prices, further increasing global agricultural production costs.

Tags: prices, India, fertilizers