India Secures Fertiliser Supplies Amid West Asia Conflict
Amid Iran war, India in mission mode to secure fertiliser supplies
The Economic TimesImage: The Economic Times
In response to supply disruptions from West Asia due to ongoing conflicts, India is negotiating with several countries, including Russia and Morocco, to secure alternative fertiliser sources. Indian embassies are actively engaging with local companies in about 20 nations to ensure vital supplies ahead of the crucial kharif crop season.
- 01India is seeking alternative fertiliser sources due to supply disruptions from West Asia, which supplies nearly 30% of its urea needs.
- 02Negotiations are ongoing with countries like Russia, Morocco, and Algeria to secure essential fertilisers.
- 03Russia has increased its mineral fertiliser supplies to India by 40%, with plans for a joint venture to produce urea.
- 04Morocco's OCP is a significant supplier, providing a substantial portion of India's phosphate imports.
- 05India's fertiliser imports from Egypt are projected to exceed $29 million in 2024, with potential investments in local production.
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India is proactively addressing potential fertiliser supply shortages caused by ongoing conflicts in West Asia, which account for nearly 30% of its urea and di-ammonium phosphate requirements. Indian embassies in approximately 20 countries are working to secure alternative sources, engaging with local fertiliser companies in nations such as Russia, Indonesia, Malaysia, Vietnam, Algeria, and Egypt. During a recent visit, Russian Deputy Prime Minister Denis Manturov informed Indian Prime Minister Narendra Modi that Russia has ramped up its mineral fertiliser supplies to India by 40%. Additionally, the two countries are collaborating on a $1.2 billion joint venture to establish a urea plant in Russia, aiming to produce 2 million tonnes of urea annually by 2027-28. Morocco's OCP, a key supplier, is exploring opportunities to expand its presence in India, while Egypt's fertiliser exports to India are expected to surpass $29 million in 2024. This strategic diversification aims to ensure a stable supply of fertilisers critical for India's agricultural sector, particularly ahead of the kharif crop planting season.
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This initiative will help stabilize fertiliser supply for Indian farmers, ensuring they have access to essential nutrients for their crops during the critical planting season.
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