China has suspended exports of specialty fertilisers to India, which has interrupted agricultural inputs for high-value crops. While no official ban has been made known, it has resulted in effectively stopping shipments by deliberate delays in customs inspections.
Specialty fertilisers are important to India’s production of fruits, vegetables and horticulture - water-soluble nutrients, micronutrients, bio-stimulants, nano and slow-release varieties.
China currently suppies nearly 80% of India’s specialty fertiliser imports, especially between June and December. The suspension threatens to impair crop productivity - in particular, as India is in the thick of the monsoon planting season. Interestingly, while India has been blocked from buying, China is still shipping products to other countries, which is a strategic trade restriction.
This has come after some recent Chinese hits at India by restricting rare earth magnets and tunnel boring machines, and these and similar non-tariff barriers signal ongoing geopolitical pressure on India.
Also Read: What the Rare Earth Crisis Means for the EV and Electronics Industry
In response, India is looking at alternative fertilisers supply chains and could be sourcing from Jordan and Europe. Additionally, local players such as Deepak Fertilizers, Nagarjuna and Paradeep are looking at ways to boost indigenous production of specialty fertilisers.
With rising agricultural input dependency on China, experts stress the urgency for India to diversify fertiliser sources and invest in local manufacturing to ensure long-term agri-supply chain resilience.
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