Iran Conflict and India’s Fertiliser Supply Vulnerability

Context:
The ongoing US–Israel vs Iran conflict exposes India’s heavy dependence on fertiliser imports, posing risks to agriculture and food security.

Key Highlights:

  • Import Dependence & Supply Chain Risks
  • India imports large quantities of:
    • Urea (~10 million tonnes)
    • DAP (~6.5 million tonnes)
    • MOP (Potash)
  • GCC countries supply ~75% of urea imports.
  • Russia is a major supplier of MOP, while China earlier dominated urea & DAP exports.
  • Energy Linkages
  • Fertiliser production depends heavily on natural gas (29% of India’s gas consumption).
  • Major LNG suppliers: Qatar and UAE.
  • Geopolitical Concerns
  • Strait of Hormuz is a key chokepoint for:
    • LNG
    • Ammonia
    • Sulphur
  • Any disruption due to conflict may affect:
    • Fertiliser production
    • Import logistics and prices
  • Current Situation & Risks
  • India currently has comfortable fertiliser stocks.
  • Prolonged conflict could:
    • Disrupt shipping routes
    • Increase global prices
    • Impact agricultural productivity

Relevant Prelims Points:

  • Urea
    • Nitrogen-rich fertiliser; most widely used in India.
  • DAP (Di-Ammonium Phosphate)
    • Provides nitrogen and phosphorus.
  • MOP (Muriate of Potash)
    • Source of potassium.
  • Strait of Hormuz
    • Strategic chokepoint between Persian Gulf and Gulf of Oman.
  • LNG (Liquefied Natural Gas)
    • Key input for fertiliser production.

Relevant Mains Points:

  • Strategic Vulnerability
    • High dependence on imports exposes India to external shocks.
    • Fertiliser supply disruptions directly affect food security.
  • Economic Implications
    • Rising fertiliser prices increase subsidy burden.
    • Impact on farm incomes and agricultural output.
  • Geopolitical Dimension
    • West Asia instability affects energy and input security.
    • Need for diversified sourcing and strategic reserves.
  • Challenges
    • Limited domestic production of phosphatic and potassic fertilisers.
    • Infrastructure constraints in storage and logistics.
  • Way Forward
    • Diversify imports (US, Australia, Southeast Asia).
    • Promote domestic fertiliser production and green ammonia.
    • Encourage balanced fertiliser use and alternatives (biofertilisers).
    • Build strategic reserves of key inputs.

UPSC Relevance:
• GS 3 – Economy (agriculture, subsidies, supply chains)
• GS 2 – International Relations (West Asia geopolitics)
• Prelims – Fertilisers, Strait of Hormuz

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