Why India is worried about fertilizer prices

India Mar 20, 2026

India is on alert after Iran recently blocked the Strait of Hormuz, a vital shipping route for oil, gas, and fertilizers.
With about one-third of globally traded urea (roughly 25-33%) passing through this strait, the government has asked officials to check how this could hit fertilizer supplies.

What does the blockade mean for India?

This blockade is shaking up global trade, especially for Asia. India imports only a small share of its urea (around 10-15%) and most of its DAP fertilizers from this region.
While there's enough stock for now, a drawn-out conflict could mean real shortages and prices jumping by up to 30%.
The government's fertilizer subsidy budget is also under pressure, which could affect both farmers and food prices if things don't improve soon.