A senior industry official said on Tuesday that India is facing higher fertilizer prices before the rabi crops season begins amid China export suspension of urea and fertilisers from October 15 onwards. Notably, China has resumed fertilizer exports from May 15 to October 15 with improved inspections but now the nation has suspended the exports until further notice, affecting India as well as global markets.
What does the China export suspension comprise?
The suspension comprises specialty fertilisers such as TMAP (Technical Monoammonium Phosphate) and Urea-solution products such as Adblue, and conventional fertilisers like DAP and Urea. Soluble Fertilizer Industry Association (SFIA) President Rajib Chakraborty stated that China has closed the export window from October 25, not only for India but the entire world market, adding that I believe the export suspension will be for the next 5-6 months”.
Furthermore, he said that India imports around 95 percent of its specialty fertilisers, such as Phosphates like TMAP, and emissions-control fluids such as AdBlue from China. He said that speciality fertilizer prices, already at abnormally high levels, could rise 10-15 percent because of China export suspension. Apparently, India consumes nearly 250,000 tonnes of specialty fertilisers annually, with 60-65 percent used during the rabi season that starts from October and ends in March.
Interestingly, the industry official stated that meeting urged for the ongoing rabi season would not be a problem as traders have already hold supplies easily available through global trading agencies, though prices would be influenced. Eventually, he said that India has alternative supply sources such as South Africa, Chile and Croatia. However, only for one or two products.