To support agricultural operations for the upcoming rabi season, India has locked in 1.7 million tonnes of imported urea at $390.25–$393.65 per tonne. This marks a sharp decline from previous 2026-27 tenders, where prices reached up to $959/t.
The tender issued by Rashtriya Chemicals and Fertilizers (RCF) saw strong global interest, attracting bids exceeding 5.5 million tonnes. Switzerland-based Ameropa Group submitted the winning lowest offer.
Key drivers behind the price drop:
- Eased energy market pressure in the Middle East following the severe price spikes seen earlier in the year.
- Surplus Chinese supply, driven by a 76% year-on-year surge in factory inventories and indirect flows of Iranian material.
India’s domestic supply position has strengthened through higher local production and robust import volumes. Furthermore, proactive sourcing of LNG from alternative suppliers—including the US, Oman, Congo, and Norway—helped mitigate transport bottlenecks caused by disruptions in the Strait of Hormuz.
While urea reserves are secure for both the kharif and rabi cropping cycles, procurement of DAP, complex fertilizers, and crucial raw materials (such as sulphur, ammonia, and phosphoric acid) continues to face tightness.
