Iran-Israel war impacts India: Fertilizer prices skyrocket
Fertilizer costs are shooting up in India as it approaches its key sowing season, thanks to the ongoing US-Israel-Iran conflict.
Deals for urea have been reported around $492 per ton, and some transactions spiked to about $530 per ton—making things tough for both farmers and the government.
DAP prices also rising
Diammonium phosphate (DAP) prices have climbed too, normalizing to around $750 by mid-February 2026 (Egypt's DAP purchases were reported at $750 around Feb 19, 2026).
Global trading hubs are also seeing steady price hikes, keeping fertilizer budgets under pressure.
Shipping disruptions and production halts
Tensions in the Gulf have led to production halts at Qatar, which supplies 40% of India's LNG imports, while shipping routes like the Strait of Hormuz are blocked or delayed.
Shipping disruptions and production halts have made supplies unpredictable.
Urea subsidy burden on government
With urea sales up nearly 4% (April-December 2025-26) and imports surging by 85% (April-December 2025-26), India's urea subsidy is estimated at over ₹1.16 trillion for fiscal year 2026-27.
Even though India depends on imports for most fertilizers, the government is trying to soften the blow with subsidies, but it's a tough balancing act right now.