Urea import cost decline sharply as global prices cool

Amid the gloom surrounding India’s fertiliser subsidies for 2026-27 (FY27), there is some light at the end of the tunnel.

India’s latest tender floated by state-run National Fertilisers Limited (NFL) to import 1.7 million tonnes of urea quoted bids at prices as low as $445-449 per tonne (CFR) for deliveries on the East and West Coasts. This is over 50 per cent lower than the price finalised in the last international tender floated in April.

The price quoted in the tender floated by Indian Potash Limited in APRIL was settled at $935 (West Coast)-959 (East Coast) per tonne for supplies of 2.5 mil-lion tonnes of urea.

Sources said the price crash happened because China decided to open up its urea imports which had been under con-trol since March.

In total, against the tender to purchase 1.7 million tonnes of urea, bids equivalent to around 3.17 million tonnes were received for supply to the East Coast. And, bids equivalent to another 3.07 million tonnes were received for supplies to the West Coast. In total, bids amounting to around 6.24 million tonnes were received from almost 34 firms against the tender for 1.7 million tonnes.

A similar thing also happened in 2022 when the landed price of urea touched al-most $1000 per tonne due to the Russia Ukraine war. Then, there was a sudden fall in rates due to enhanced supplies.

The situation may remain comfortable until August 2026 after which China could again start imposing stringent curbs on imports, believe experts.

The latest price drop not only bring a major relief to the government, which is grappling with a rising fertiliser subsidy but will also prove to reduce the cost of resin, for one industries.

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