India has sharply increased urea purchases from Egypt, Algeria and Nigeria, sourcing about 1.1 million tonnes from the three African countries as disruptions around the Strait of Hormuz strain traditional supply routes and push its fertiliser subsidy bill towards ₹3.54 trillion ($37.1 billion).
•India has significantly increased urea imports from Egypt, Algeria, and Nigeria due to disruptions in the Strait of Hormuz.
•These three nations, along with Georgia, supplied over half of India’s urea imports in the first quarter of the financial year, despite no imports from them in the same period last year.
•The diversification away from traditional Gulf suppliers is driven by geopolitical tensions and shipping disruptions affecting the Persian Gulf region.
•India has also lowered its overall fertiliser demand forecast amid weaker rainfall, while increasing its reliance on new suppliers, particularly in Africa
According to commerce ministry data cited by Mint, India imported 2.5 million tonnes of urea in the first quarter of the current financial year, with Egypt, Algeria, Nigeria and Georgia accounting for 52% of the total.
Egypt supplied 609,000 tonnes, followed by Algeria with 245,000 tonnes and Nigeria with 244,000 tonnes, while Georgia shipped 211,000 tonnes.
Together, the three African countries supplied nearly 1.1 million tonnes, marking a sharp increase from the same quarter a year earlier, when India imported no urea from any of the four countries.
The rise also highlights Africa’s growing role in India’s fertiliser market, where major producers include MOPCO and Abu Qir in Egypt, Sorfert and AOA in Algeria, and Dangote Fertiliser and Indorama Eleme in Nigeria.
Hormuz disruption accelerates sourcing shift
Notably, the diversification has been accelerated by disruptions around the Strait of Hormuz, one of the world’s most important shipping routes for fertilisers and energy products.
India has traditionally relied heavily on Gulf suppliers, sourcing more than 40% of its urea and phosphatic fertiliser imports from the region, making it vulnerable to disruptions in the Strait of Hormuz.
As tensions in the Persian Gulf affected vessel movements, freight costs and delivery schedules, New Delhi moved to secure alternative supplies from Egypt, Algeria and Nigeria, alongside several Asian and European markets.
India also continued receiving some Gulf-linked cargoes after vessels carrying urea, diammonium phosphate and sulphur crossed the strait, but the disruption reinforced efforts to reduce dependence on a narrow group of suppliers.
Africa gains ground in India’s fertiliser market
The latest purchases build on a broader rise in African shipments to India.
During the 2025-26 financial year, Nigeria supplied 447,090 tonnes of urea, while Algeria exported 217,059 tonnes and Egypt shipped 194,830 tonnes.
Together with Georgia, the four countries accounted for 8.8% of India’s 11.2 million tonnes of urea imports.
Despite operating 33 urea plants with a combined capacity of 26.9 million tonnes, India still imports about 20% of its annual requirements, creating a wider opening for African producers.
Higher prices increase subsidy burden
India is facing a sharp rise in fertiliser costs as it broadens its supplier base.
The country’s fertiliser ministry has proposed increasing government subsidies to ₹3.54 trillion ($37.1 billion), from the ₹1.77 trillion ($18.6 billion) initially budgeted, amid higher global prices and geopolitical tensions.
The subsidy bill had already risen above ₹2.17 trillion ($22.8 billion) in the 2025-26 financial year.
Meanwhile, market data show that the price of a 45kg bag of fertiliser has climbed from ₹2,900 ($30) to ₹4,300 ($45).
India trims demand forecast
At the same time, India has lowered its fertiliser demand forecast after weaker rainfall expectations, cutting overall requirements for the current kharif season to 38.39 million tonnes from 39.05 million tonnes and reducing projected urea demand by about 400,000 tonnes to 19 million tonnes.
Despite the lower forecast, Egypt, Algeria and Nigeria are gaining a stronger foothold in India’s fertiliser market as New Delhi reduces its exposure to supply risks concentrated in the Middle East.
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