India is set to import a record 2.5 million metric tons of urea in a single tender, according to government sources, at prices nearly double those paid just two months ago. The surge in costs comes as the ongoing Iran-related conflict disrupts global fertilizer supply chains and tightens availability in international markets.
The large-scale procurement accounts for roughly a quarter of India’s annual urea imports, which stand at around 10 million tons for 2025. The sudden spike in purchasing volumes is expected to place additional pressure on global supply, potentially driving prices even higher amid already strained conditions caused by instability in the Middle East.
Indian Potash Limited has agreed to purchase 1.5 million tons of urea at $935 per ton for west coast delivery and an additional 1 million tons at $959 per ton for east coast delivery, according to sources familiar with the deal. The agreement follows a competitive tender process in which suppliers offered a total of 5.6 million tons, with bids ranging from $935 to as high as $1,136 per ton, though most clustered around the $1,000 mark.
Officials said multiple suppliers ultimately matched the lowest bid, enabling the full procurement of 2.5 million tons. Shipments under the tender are required to leave loading ports by June 14, according to the tender conditions, underscoring the urgency of securing supplies amid volatile global conditions.
The latest deal marks a sharp increase compared with India’s previous urea tender, where prices stood at roughly $508 per ton for west coast delivery and $512 per ton for east coast delivery. The steep rise is expected to significantly increase India’s fertilizer subsidy burden, as the government continues to offset costs to ensure farmers receive crop nutrients at regulated prices.
As the world’s largest importer of urea, India’s aggressive purchasing strategy is also expected to tighten availability for other buyers. Industry officials warn that competing importers may now face difficulties securing supply, as major producers have already allocated significant volumes to India, further amplifying pressure across global fertilizer markets.
