Advertisement

India Faces Rising Fertiliser Costs Due To Sulphur Crisis Amid Iran Conflict

The supply crunch comes at a crucial time, with the Agriculture Ministry preparing for the upcoming Rabi season and assessing fertiliser requirements to ensure adequate availability for farmers.

India Faces Rising Fertiliser Costs Due To Sulphur Crisis Amid Iran Conflict
India remains heavily dependent on imported sulphur for fertiliser production.

The impact of disruptions in global supply chains is beginning to be felt in India, with sulphur prices surging and concerns growing over fertiliser availability ahead of the upcoming Rabi season.

The landed cost of sulphur has nearly doubled since the beginning of the year to around $1,050-$1,100 per tonne, raising input costs for manufacturers of Di-Ammonium Phosphate (DAP), Single Super Phosphate (SSP) and other complex fertilisers.

The supply crunch comes at a crucial time, with the Agriculture Ministry preparing for the upcoming Rabi season and assessing fertiliser requirements to ensure adequate availability for farmers.

The disruption has been triggered by rising tensions in the Middle East. Attacks on cargo vessels and tankers passing through the Strait of Hormuz have affected maritime traffic in recent weeks, leading to supply disruptions and a sharp rise in sulphur prices in international markets.

Over the past seven months, the conflict involving the US, Israel and Iran has disrupted the global supply of critical fertiliser inputs such as sulphur. Freight costs and insurance premiums have increased, while shipment delays have become more frequent.

India remains heavily dependent on imported sulphur for fertiliser production. In 2025, the country imported 2.25 million tonnes of sulphur, around 84 per cent of it from the Middle East. However, imports between January and May 2026 declined 26 per cent year-on-year to 698,200 amid the ongoing conflict.

The phosphatic and potassic (P&K) fertiliser industry requires an estimated 3 to 3.5 million metric tonnes of sulphur annually. Around 84 per cent of India's sulphur imports come from the Middle East, primarily from Oman and the United Arab Emirates. India also imports sulphur from Qatar, Saudi Arabia and Kuwait.

Besides fertilisers, sulphur is widely used in the production of sulphuric acid, dyes and chemical intermediates, petroleum refining, metal processing, the rubber industry and several other industrial sectors.

In an exclusive conversation with NDTV, Dr BS Dwivedi, Secretary of the National Academy of Agricultural Sciences, said India would need a long-term strategy to reduce its dependence on imported sulphur.

"To achieve this, we must leverage technology to utilise domestic sources of low-grade sulphur-bearing minerals. We also need to ensure the efficient use of fertilisers. In view of this situation, India must develop a long-term strategy to make the fertiliser sector self-reliant," he said.

According to the latest Commerce Department data, sulphur imports in July fell nearly 47 per cent compared to the same month last year.

The Ministry of Chemicals and Fertilisers is closely monitoring sulphur availability and prices. Given sulphur's importance in phosphatic fertiliser production, the ministry has held discussions with the Ministry if Petroleum and Natural Gas (MoPNG) on prioritising supplies from public and private sector refineries for fertiliser manufacturers.

The government has also put in place the Nutrient-Based Subsidy (NBS) scheme for phosphatic and potassic fertilisers. Under the scheme, P&K fertilisers fall under the Open General Licence (OGL) regime, allowing companies to import or manufacture fertilisers and raw materials, including sulphur, according to their business requirements.

Geopolitical tensions affecting shipping through the Strait of Hormuz have created fresh obstacles for India's sulphur imports. In response, the government has taken steps to ensure uninterrupted imports and secure critical shipments.

The pressure on supplies has been compounded by export restrictions imposed by major producers such as China and Russia, tightening global inventories. Competition for available sulphur between fertiliser manufacturers and industrial users, including mining and metal-processing companies, has also kept prices elevated.

Against this backdrop, the Union Agriculture Ministry will hold the Rabi Conference at the Indian Agricultural Research Institute (Pusa Institute) in New Delhi on September 28 and 29. Agriculture ministries from all states are expected to present their Rabi season plans, including proposed crop acreage.

The conference will help determine fertiliser requirements and other key agricultural inputs needed for the upcoming Rabi Season based on the projected sowing area for various crops.

Show full article

Track Latest News Live on NDTV.com and get news updates from India and around the world

Follow us:
Listen to the latest songs, only on JioSaavn.com