Costly fertiliser imports strain India
May 25, 2026 at 05:10 UTC
Key Points
- India’s latest urea and DAP imports are near $935 per tonne
- Key fertiliser inputs like sulphur and ammonia are trading at elevated ranges
- Higher dollar prices and a weaker rupee are lifting domestic fertiliser costs
- Sulphur supply tightness is pressuring fertiliser production economics
Imported fertiliser costs rise for India
India’s most recent fertiliser import contracts have been concluded at significantly elevated landed prices across key products. Latest urea imports were agreed at $935–959 per tonne, while diammonium phosphate (DAP) was contracted at a landed price of $935 per tonne.
Muriate of potash (MOP), another major nutrient for crop production, is arriving at a landed price of $383 per tonne. These levels underline a broad rise in the cost of imported fertilisers that are critical to India’s agricultural sector.
Input materials see broad-based price elevation
Input chemicals used to manufacture complex fertilisers are also trading at high levels. The landed price for phosphoric acid, a key feedstock for phosphate fertilisers, stands at $1,360 per tonne. Ammonia, an essential nitrogen input, is being imported at $840–850 per tonne.
Sulphur, widely used in fertiliser production, is currently at an especially elevated range of $750–850 per tonne. This higher sulphur cost is adding to pressure on fertiliser input economics, particularly for producers reliant on imported raw materials.
Impact of currency and dollar prices on domestic costs
The combination of higher dollar-denominated landed prices and a weaker rupee is raising the domestic cost burden for fertiliser procurement. Importers and producers paying in foreign currency face higher effective outlays when converted into rupees.
These cost pressures apply across the fertiliser chain, from straight nutrients such as urea and MOP to processed products that depend on inputs like phosphoric acid, ammonia and sulphur. The elevated import bills can influence overall affordability and budgeting for fertiliser supplies.
Sulphur supply strains and production response
Sulphur has become a particular point of stress within the fertiliser input mix. The commodity is trading at a notably high landed range of $750–850 per tonne, reflecting tightness in availability.
According to market reports, fertiliser groups have been cutting production as the Iran war squeezes sulphur supplies. The constrained flow of sulphur has contributed to higher prices and complicated sourcing, directly affecting the economics and operating decisions of fertiliser producers.
Reduced output in response to sulphur constraints highlights the sensitivity of fertiliser manufacturing to disruptions in a single key raw material. The elevated landed prices now visible across urea, DAP, MOP and input chemicals are occurring against this backdrop of supply pressure.
Broader implications for fertiliser markets
Elevated import prices for finished fertilisers and their raw materials, combined with currency effects, are increasing cost pressures along the fertiliser value chain. Producers face higher input bills, while importers must manage both price and supply risks.
The ongoing squeeze in sulphur supplies linked to the Iran conflict is adding another layer of complexity, prompting production adjustments and reinforcing the upward pressure on landed costs of multiple fertiliser inputs.
Key Takeaways
- India is facing elevated landed costs across all major fertiliser products and key inputs, signalling a more expensive supply environment for agricultural nutrients.
- Currency depreciation amplifies the impact of higher dollar-denominated prices, increasing the rupee cost of fertiliser imports and straining procurement budgets.
- Tight sulphur supply linked to the Iran war is feeding through to production cuts and higher input prices, underscoring the vulnerability of fertiliser output to geopolitical shocks.
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