At the onset of the Iran war, eight urea, four diammonium phosphate (DAP), one ammonia and three sulphur vessels bound for India were stranded in the strait.
“Some vessels carrying urea, ammonia and DAP have crossed the strait,” said an importer of fertilisers, who did not wish to be identified.
The disruption followed US and Israeli strikes on Iran from February 28, which led to the closure of the Strait of Hormuz, one of the world’s busiest energy and commodity shipping routes. West Asia is India’s largest supplier of fertilisers and key raw materials such as ammonia and sulphur, making the waterway critical for ensuring timely imports ahead of the kharif sowing season.
The disruption in shipping also affected liquefied natural gas (LNG) supplies, slowing domestic urea production during March and early April, when India builds inventories of the crop nutrient ahead of the June onset of the southwest monsoon. The government subsequently secured additional LNG supplies and floated three global urea tenders to prevent shortages during the sowing season.
The conflict also sent global prices of ammonia and sulphur-key inputs for manufacturing DAP)-to multi-month highs as supply chains from West Asia tightened. Industry executives said any sustained resumption of shipping through the Strait of Hormuz would improve the availability of these raw materials and gradually bring down prices, although a full normalisation could still take several months.