An Australian company will import 250,000 tonnes of urea fertiliser from Indonesia in the coming months, easing fears of a shortage that would crimp food production, Canberra said on Friday.

Australia is one of the world’s biggest exporters of crops including wheat, barley and canola but relies on fertiliser imports that are threatened by ‌the war on Iran, which has cut supply from the Middle East, a major urea producer.

The price of urea, a source of nitrogen that fuels plant growth, has risen by around 60 per cent in Australia since the war began in late February.

Many farmers now sowing winter crops are considering planting less to reduce their need ⁠for fertiliser, which even if available may cost too much. Fuel costs have also shot ‌up, adding to pressure on farm budgets.

Reduced planting or fertiliser application on planted crops would cut crop production and global supply, potentially pushing up food prices.