An India-bound urea shipment booked under an April tender was withdrawn after concerns emerged over possible links to Iran, Bloomberg reported on Tuesday.

The cargo was being transported aboard the bulk carrier Infinity and had been sold by Aditya Birla Global Trading (Singapore) Pte., the report said.

Officials involved in the tender reportedly questioned the origin of cargoes offered under the deal as business linked to Iran continues to face restrictions under US sanctions.

According to the report, Birla Global Trading eventually withdrew the shipment and offered a replacement cargo after similar concerns were raised internally. At least one other shipment sold by a smaller company was also withdrawn, one of the people told Bloomberg.

Don't Miss: Government On Alert As Rising Urea Prices Trigger Fertiliser Supply Concerns

The development comes at a sensitive time for India, the world's largest urea importer, as the ongoing West Asia conflict disrupts fertiliser supply chains and pushes global prices sharply higher.

Iran remains a major fertiliser supplier globally. However, much of its fertiliser production is tied to petrochemical companies that face US sanctions. 

Exports from the region have also been disrupted because of the conflict and shipping risks around the Strait of Hormuz and the Gulf of Oman.

India booked around 2.5 million tonnes of urea in the April tender. Bloomberg said the Infinity was carrying nearly one-tenth of that volume, limiting the immediate impact of the withdrawal. 

Still, the cancellation adds pressure on India's fertiliser imports at a time when prices are already surging.

According to the report, the price agreed by India in the latest tender was nearly double the levels seen before the Iran conflict began.

Aditya Birla Global Trading denied dealing with sanctioned entities or blacklisted cargo origins. "We reiterate that we maintain a strict commitment to full compliance with all applicable sanctions and regulatory frameworks,” Shyam Zanwar, the company's compliance officer, told Bloomberg in an emailed response.

The report also highlighted unusual movement patterns linked to the vessel. According to ship-tracking data, the Infinity signaled its location near Oman's Sohar port in late February before switching off its transponder for more than a month. The vessel reappeared in the Gulf of Oman on April 12.

During its onward journey, the Infinity reportedly made irregular movements, including tracing a geometric pattern mid-route, which analysts often view as a sign of possible signal manipulation. The vessel later appeared near waters off Pakistan and India on May 1 before signaling a return to the Gulf of Oman a day later — a turnaround that would normally take at least two days.

The ship also did not appear on Kandla port's list of expected arrivals. The Infinity, which has a deadweight tonnage of around 30,000 tonnes, last signaled Sohar as its next destination while reporting itself as fully laden, the report added.

Published on: May 12, 2026 3:33 PM IST