India confronts Rising Fertiliser Costs Due To Sulphur Crisis Amid Iran Conflict

India confronts Rising Fertiliser Costs Due To Sulphur Crisis Amid Iran Conflict

The impact of disruptions in global supply chains is beginning to be felt in India, with sulphur prices surging and concerns growing over fertiliser availability ahead of the upcoming Rabi season.

The supply crunch comes at a crucial time, with the Agriculture Ministry preparing for the upcoming Rabi season and assessing fertiliser requirements to ensure adequate availability for farmers. “To achieve this, we must leverage technology to utilise domestic sources of low-grade sulphur-bearing minerals. We also need to ensure the efficient use of fertilisers. The Ministry of Chemicals and Fertilisers is closely monitoring sulphur availability and prices. Given sulphur’s importance in phosphatic fertiliser production, the ministry has held discussions with the Ministry if Petroleum and Natural Gas (MoPNG) on prioritising supplies from public and private sector refineries for fertiliser manufacturers.

Sulphur imports in July fell nearly 47 per cent compared to the same month last year, according to the latest Commerce Department data.

In an exclusive conversation with NDTV, Dr BS Dwivedi, Secretary of the National Academy of Agricultural Sciences, said India would need a long-term strategy to reduce its dependence on imported sulphur. In view of this situation, India must develop a long-term strategy to make the fertiliser sector self-reliant,” he said.

The government has also put in place the Nutrient-Based Subsidy (NBS) scheme for phosphatic and potassic fertilisers. Geopolitical tensions affecting shipping through the Strait of Hormuz have created fresh obstacles for India’s sulphur imports. In response, the government has taken steps to ensure uninterrupted imports and secure critical shipments.

Under the scheme, P&K fertilisers fall under the Open General Licence (OGL) regime, allowing companies to import or manufacture fertilisers and raw materials, including sulphur, according to their business requirements.