Indian Potash (IPL), one of the three canalising agencies for import of urea on government account, has received the official nod to import the entire 2.5 mt urea at the lowest rates offered by traders and suppliers – $935 per tonne for the West Coast and $959 per tonne for the East Coast delivery. The decision followed the bidders’ acceptance of the lowest (L1) offer to supply the necessary quantity.
The previous tender by public sector RCF in mid-February had received offers for the supply of 1 mt of imported urea at $508 (West Coast delivery) and $512 (East Coast delivery) for delivery by March 31, though the government condoned delay in receiving shipments due to the Iran war.
Sources said that the bidders have also agreed to the government’s request to avoid the war-hit Strait of Hormuz and get the supplies from anywhere other than West Asia as far as possible. The companies are likely to source the urea from Russia, Algeria, Nigeria, Egypt, Indonesia and Malaysia, the sources said.
84% jump in prices
If the lowest rate is compared with the RCF tender, there is an 84 per cent increase in only two months. As the lowest price for the west coast was offered by Millennium Commodity at $935 per tonne only for 56,000 tonnes, other companies that agreed to the L1 offer have been asked to supply the offered quantity aggregating 1.5 mt. Similarly, the L1 offer of $959 per tonne for the east coast by Chasemax for 100,000 tonnes is matched by other companies (in order of lowest price) for the remaining 0.9 mt.
Aditya Birla Global Trading had offered $941.70 per tonne for 0.7 mt for west coast and $966 per tonne for 0.65 mt for east coast.
Published on April 22, 2026