The Indian fertiliser industry has expressed the hope that the ceasefire and dialogue agreed by the US and Iran will slowly improve the supply of raw materials, gas and finished products once the Strait of Hormuz gets opened, though impact on price reduction may be gradual.

The timing of the ceasefire is very crucial as April and May are two crucial months to produce and stock urea as much as possible as kharif sowing season will start from June with arrival of monsoon.

“It is a welcome move and India will benefit in terms of getting supplies of raw materials, gas, intermediaries such as phosphoric acid and sulphuric acid and fine products like DAP and urea from supplier countries,” said an industry official.

Though the concern over the global high price to remain for some time, it will ease immediately when supplies improve, he said, adding that to what extent the fall will be also depends on crude oil prices.

Commenting on the ceasefire, P S Gahlaut, Managing Director of Indian Potash Limited (IPL), said that the company remains focused on strengthening supply preparedness through timely imports and efficient distribution across states ensuring fertiliser availability.

To curb speculation

“The ceasefire is a timely and positive development as it is expected to improve LNG availability from the Gulf and support uninterrupted fertilizer supplies ahead of the kharif sowing. Since natural gas is the key feedstock for urea production and India remains significantly dependent on imported LNG, this will help stabilise domestic production, ease import-related cost pressures, and curb speculative price increase,” said Gahlaut.

The development also offers relief on the subsidy front and strengthens overall supply-chain confidence for the fertiliser sector, he said.

IPL, on behalf of the government, on April 4 floated a global tender to import 2.5 million tonnes (mt) of Urea, highest quantity ever in a single bid by the government, to be opened on April 15. It specifies that after loading of Urea, the vessels should start sailing from the load-port before June 15, potentially helping India to receive the crop nutrient by before July 31.

The government also announced on Wednesday that the supply of liquefied natural gas (LNG) to Urea plants will be increased to 95 per cent of their last six months’ average consumption. On Monday it had announced that the units had started receiving 90 per cent of their LNG requirement.

According to Chirag Jain, Partner - Agri and Allied Sector, Grant Thornton Bharat, India’s fertiliser economy remains deeply embedded in global supply chains. Things have become much more critical and volatile with the ongoing West Asia crises as the Gulf region accounts for 20–30 per cent of India’s urea requirement and 30 per cent of DAP imports, and also supplies nearly 50 per cent of India’s LNG imports, which is a key feedstock for urea production.

Jain termed the Cabinet’s approval on Wednesday for ₹41,500 crore fertilizer subsidy for Kharif 2026 as a prudent and timely measure to mitigate the cascading impact of supply disruptions and price volatility arising from the West Asia conflict. “By ensuring the continued availability of key fertilizers at stable prices, the decision safeguards farmers’ input affordability during the critical Kharif season. This intervention will help sustain sowing intensity, prevent cost-induced distress, and protect farm incomes,” he said.

The government has not allowed companies to hike retail prices of Urea and DAP, most commonly applied fertilisers while marginal hike has been noticed in MOP and complex fertilisers in last one year.

Published on April 8, 2026