India says fertilizer stocks secure despite Middle East war

The Indian Department of Fertilizers said March 6 that its fertilizer stocks were "robust, secure and fully equipped to handle" the country's peak demand season, despite the war in the Middle East.

India was the world's single-largest urea importer in 2025, bringing in 10.2 million metric tons, of which more than 41% was sourced from the Middle East, according to S&P Global Market Intelligence's Global Trade Analytics Suite.

The country imported 6.43 million mt of diammonium phosphate in 2025. Saudi Arabia was the largest supplier, sending2.68 million mt, according to GTA.

"Benefiting from a lean consumption phase and an aggressive advance stocking strategy, the government has built a formidable buffer of all grades of fertilizers," the Department of Fertilizers said in a March 6 media release.

The department said the country's fertilizer reserves increased 36.5% from 12.985 million mt March 6, 2025, to 17.731 million mt as of March 6, 2026. That included 2.513 million mt of diammonium phosphate, 5.587 million mt of NPKs and 5.930 million mt of urea, it said.

Another 1.7 million mt of finished fertilizers were lined up for import in the next three months, the department said.

The country is expected to receive 1.3 million mt of urea under its latest purchase tender of urea, closed by Rashtriya Chemicals and Fertilizers Feb. 18.

Market sources said about 500,000 mt was set to have been imported from the Middle East.

Gas supply priority

Meanwhile, the government said its own production would also not be affected by the loss of Middle East LNG exports. It said it had "assured fertilizer companies that gas supply to their sector remains a top national priority."

Fertilizer companies had advanced to March scheduled plant repair and maintenance to minimize potential disruptions caused by the war, the government said.

"Farmers are the priority of the government, and their interests will not be compromised under any circumstances," the department said in the statement. "Farmers are encouraged to proceed with their Kharif preparations without any panic."

Miguel Esteva, &P Global Energy CERA, nitrogen and ammonia analyst, said it was "possible that given India's relatively high urea stocks, a short‑lived Middle Eastern conflict could be absorbed without immediate market disruption."

"However, in the event of a prolonged conflict, India would likely face the unavoidable need to source urea from non‑Middle Eastern suppliers, leaving it exposed to a higher‑cost product," Esteva said.

"[But] under an extended supply shock, India will not risk discontent among its agricultural population and would be willing to pay a premium to secure supply," he said.

Platts, part of S&P Global Energy, assessed diammonium phosphate CFR India at $720/mt March 5, up $13/mt week over week.