Fertiliser Prices Set to Surge as China Suspends Exports

India has sharply increased fertiliser imports ahead of the rabi (winter) sowing season, bringing in nearly six times more urea and three times more di-am-monium phosphate (DAP) in September 2025 than it did in the same month last year.

According to industry estimates, India imported 19.4 Lakh tonnes of urea and 8.81 Lakh tonnes of DAP in September 2025, compared with 3.12 Lakh tonnes and 3.79 Lakh tonnes respectively in the same month last year.

While urea consignments have Largely been stored at ports, companies have begun distributing DAP across key wheat growing regions, since the fertiliser in applied immediately after sowing.

Urea is a nitrogen-rich fertiliser which promotes plant growth, improve crop yields and DAP is important particularly for early root development, seed germination.

India is preparing for higher fertiliser prices ahead of the crucial rabi (winter) crop sea-son after China suspended ex-ports of urea and specialty fertilisers from October 15, India imports about 95% of specialty fertilisers from China.  

China, which had only recently resumed fertiliser exports from May 15 to October 15 with increased inspections, has now suspended the export window until further notice, affecting not just India but global markets as well.

The sharp rise in imports comes after India grappled with a fertiliser crunch last year. Domestic manufacturers were directed by the government not to schedule maintenance shutdowns until the end of the financial year to ensure uninterrupted supply, even though officials publicly denied any shortage.

The situation had worsened after China temporarily suspended exports of urea and certain other fertilisers, forcing Indian buyers to scout for alternative suppliers in the Middle East, Africa and Eastern Europe.

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