India’s Specialty Fertiliser Industry Faces Fresh Supply Hurdles as China Plans Export Curbs from October

New Delhi, September 1 – India’s specialty fertiliser industry is bracing for fresh supply disruptions as China is poised to re-impose export curbs from October, a move expected to drive up costs and burden farmers in the peak cultivation period.

The recent reprieve from resumed Chinese shipments is soon to come to an end, according to Rajiv Chakraborty, Soluble Fertilizer Industry Association (SFIA) President, as Beijing is putting in place tighter curbs by stepping up inspections and delaying shipments.

Industry Hurries to Stock Up

Indian importers and international sourcing companies are rushing to secure consignments during the current one-month period. “We have very good global sourcing players who will be taking their whole consignments and requirements in this one month only,” Chakraborty said.

The industry hopes for some respite from native supplies mid-season, but the firms are worried that price hikes are inevitable. “We won’t see much difference this time except the price increases, which will have a direct impact on farmers,” he added.

Heavily Reliant on China

India’s dependence on China for specialty fertilisers has increased over time:

• 80% of the imports are directly from China.
• 15% indirectly through Chinese-linked traders.
• Domestic production of only 5% of NPK formulations.

This makes India 95% reliant on Chinese imports in the specialty segment.

Previous Halt Triggered Price Surge

This summer, Beijing’s export suspension triggered a 40% price spike in India. Although the timing held initial disruption at bay, the impending restrictions are timed to coincide with peak usage in cash crops and horticultural farming like grapes and bananas, wherein drip irrigation systems are dependent on soluble fertilisers. With the coming season opening in September, the timing of restrictions may escalate expenses for farmers already constrained by inputs.

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