India to Launch Global Tender for Ammonia to Secure Fertilizer Production
India's global Ammonia tender likely ahead to secure fertilizer production
The Economic Times
Image: The Economic Times
India plans to issue a global tender for ammonia, essential for producing urea and other fertilizers, to meet its annual demand of 17-19 million tonnes. This decision follows recent disruptions in the global ammonia market due to geopolitical tensions, particularly affecting supply from Russia.
- 01India is set to issue a global tender for ammonia to secure fertilizer production.
- 02The country consumes 17-19 million tonnes of ammonia annually, primarily through imports.
- 03Geopolitical tensions have disrupted the global ammonia market, impacting availability and prices.
- 04The upcoming planting season in June heightens the urgency for ammonia procurement.
- 05Domestic urea production has already faced challenges due to reduced gas supplies.
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India is preparing to issue a global tender for ammonia, a vital raw material for producing fertilizers like urea and di-ammonium phosphate (DAP). The country requires 17-19 million tonnes of ammonia annually, with most of it imported. This move follows a recent tender for 2.5 million tonnes of urea aimed at boosting reserves before the June planting season. Disruptions in the global ammonia market, particularly due to Russia's halt in production amid geopolitical tensions, have led to price volatility and supply instability. The kharif season, which begins in June and is crucial for India's food-grain production, further emphasizes the need for timely ammonia procurement. Additionally, domestic production of urea has been challenged by reduced liquefied natural gas supplies following a force majeure declaration by Petronet LNG in March.
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This tender will help stabilize fertilizer production in India, ensuring adequate supply for the upcoming planting season, which is crucial for food security.
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