India locks in record urea import at nearly double rates amid Iran war supply shock: Report

India is set to purchase a record 2.5 million tonnes of urea through a single tender, paying nearly double the rates seen just two months ago, as supply disruptions tied to the Iran conflict roil global fertiliser markets, Reuters reported on Thursday, citing government sources.

State-run Indian Potash (IPL), which conducted the tender earlier this month, has finalised deals for 1.5 million tonnes at $935 per tonne for west coast delivery and 1 million tonnes at $959 per tonne for the east coast, the report said. The agreed prices mark a sharp jump from the previous tender floated by Rashtriya Chemicals and Fertilizers, where bids were in the range of $508–$512 per tonne.

The scale of the purchase, equivalent to roughly a quarter of India’s annual urea imports, underscores the urgency with which New Delhi is moving to secure supplies amid tightening global availability and rising geopolitical risks in West Asia.

According to Reuters, the tender drew offers totalling about 5.6 million tonnes, indicating strong supplier interest despite elevated price volatility. While a limited volume was offered at $935 per tonne, most bids were clustered around $1,000 and extended up to $1,136 per tonne.

IPL ultimately managed to secure the full volume after multiple suppliers agreed to match the lowest bids for both west and east coast shipments, the report said. Cargoes under the deal are scheduled to be loaded by June 14, as per tender documents.

India, the world’s largest importer of urea, typically buys around 10 million tonnes annually to meet domestic demand. The current tender is the largest ever issued by the country for the fertiliser.

The steep rise in import costs is expected to inflate the government’s fertiliser subsidy bill, as retail prices remain capped to protect farmers from global price fluctuations.