Russia replaces China to become the biggest supplier of fertilizers to India

Tags: Economy/Finance

Russia has emerged as the biggest supplier of fertilizers to India in the first half of the 2022-23 financial year replacing China. According to a report of the news agency Reuters the Russians offered its fertilizers to India at a steep discount after the global fertilizer prices jumped during the Russia -Ukraine war and western countries refused to buy Russian fertilizers.

India's fertilizer imports from Russia increased by 371% to a record 2.15 million tonnes in the first six months of the year (April-September 2022). The increase in Russian supply have led to the decline in India’s import from traditional sources like China Jordan, Egypt and the United Arab Emirates.

In the 2021/22 financial year Russia's share in Indian imports was around 6%, while China was around 24%.

India's total fertilizer imports in the first half of 2022/23 fell 2.4% from a year ago to 10.27 million tonnes, although in value terms imports during the period surged 59% to $7.4 billion. 

India, which is a major importer of Urea, aims to become self-sufficient by 2024 and is trying to improve its domestic production.

Russia and Belarus were a major exporter of fertilizers in the world.  They both accounted for more than 40% of global exports of potash last year. Russia accounted for about 22% of global exports of ammonia, 14% of the world's urea exports and about 14% of Monoammonium phosphate (MAP). However due to the Russian attack on Ukraine the supply of fertilizers in the world market was disrupted leading to its shortage and increase in prices.