The adverse effects of the Israel-US-Iran war have started to be seen on the Indian economy, apart from inflation, unemployment, this war can cause food shortage.
SNPNEWS.IN News (Gurmail Kamboj): As the Israel-US-Iran war drags on, it is becoming a big challenge for governments around the world, including India. Similarly, for India (whose population is 58-60% dependent on agriculture and 45.5% directly works in the agricultural sector), this war will become a big problem.
The country depends on the Gulf countries for the supply of 63% of its nitrogenous fertilizers and 32% of DAP, India imports about 20-25% of its urea requirement from the Gulf countries. Similarly, Saudi Arabia supplies about 41% of the country’s DAP requirement. India also imports natural gas, ammonia and sulphur from Qatar, UAE and Saudi Arabia for making fertilizers.
● Oman: Main source of urea fertilizer (through OMIFCO plant).
● Saudi Arabia: Major supplier of DAP, urea, ammonia and potash.
● Qatar: Urea, ammonia, sulphur and natural gas.● UAE: Urea, ammonia, sulphur and NPK fertilizers.
● For making phosphatic fertilizers, which are supplied from Kuwait, Qatar and UAE through this route.
● India exports about 3.1 million metric tonnes of DAP every year through Saudi Arabian company Ma’aden.
● About one-third (33%) of the world’s fertilizer trade (Strait of Hormuz) is carried out through the narrow passage.
● Petroleum products are used as solvents in medicines with Emulsifiable Concentrate formulation. They are directly affected by the increase in crude oil prices.
● According to experts, the prices of pesticides can be seen to increase by 10% to 20% in the coming season.
The impact of the war in the country started to be seen from the first week of the Israel-US-Iran war, the waiting period for the supply of cooking gas across the country has been increased to 25 and 40+, the supply of cloth, floor tiles and packaged milk of Gujarat has been affected.
Read it: The Crisis Of DAP & UREA Fertilizers In The State In 2025
Apart from this, the demand for Urea/DAP fertilizer has started increasing rapidly. Many urea production units in the country have been temporarily closed due to shortage of LNG because 70-80% of the cost of making urea is natural gas. India imports most of its LNG requirement from Qatar through Hormuz.
Iran’s effective closure of the Strait of Hormuz has brought commercial shipping to a near standstill. The Strait of Hormuz is a vital route for India’s supply of fertilizers. Nearly one-third (33%) of the world’s fertilizer trade passes through this narrow waterway. India relies heavily on this route for its agricultural needs, including urea, DAP, and the raw materials needed to make them. 100% of potash, ammonia used to make nitrogenous fertilizers, comes mainly from Saudi Arabia, Qatar, and the UAE. China has imposed a ban on fertilizer imports amid rising prices and domestic needs amid the Israel-US-Iran war, which could be a concern for India.
Many of the intermediates and chemicals used to make pesticides come through the Gulf countries. Tensions in the Strait of Hormuz have affected their supply, which has slowed down the pace of production in factories. Petroleum products play a major role in the manufacture of pesticides. The increase in crude oil prices due to the war has made packaging (Plastics) and transportation of pesticides expensive. The chemicals used to dissolve pesticides have also become expensive,
Large Israeli companies like ADAMA are very active in India. The war may affect the research and development (R&D) and supply chain of these companies, which may reduce the arrival of new technology drugs. India has sufficient stock of pesticides for the next few months, but if the war lasts long, then the prices of drugs can increase by 10% to 15% in the coming time.