RCF’s latest urea tender draws bids well above requirement; India diversifies imports beyond Gulf as diplomacy, long-term deals cushion supply chain
India’s fertiliser supplies for the upcoming Rabi season appear secure despite ongoing disruptions around the Strait of Hormuz, with the latest urea import tender attracting bids well above the required quantity, industry executives and analysts said.
The development comes as fertiliser companies typically lock in August imports so cargoes reach Indian ports by September–October, ahead of peak winter sowing demand. Rashtriya Chemicals and Fertilizers Ltd floated a tender on July 29 to import 1.7 million tonnes of bulk urea split between the west and east coasts excluding sanctioned countries. Bidding closed August 11 with strong response for September deliveries, according to S&P Global Commodity Insights.
India needs roughly 39 million tonnes of urea annually, producing about three-fourths domestically and importing the rest. Concerns had mounted since around 70% of India’s urea imports and nearly 60% of its LNG feedstock typically transit the Strait of Hormuz.
In response, India has accelerated diversification beyond traditional Gulf suppliers, already contracting over 5 million tonnes of urea this year nearly two-thirds of expected imports. A senior government official said the department of fertilisers is exploring new sourcing avenues through Indian missions abroad to reduce regional dependence and strengthen supply chain resilience.
Indian firms have also finalised long-term agreements with Saudi Arabian companies for about 3.1 million tonnes of annual DAP supply. Market sources expect prices to settle at $390–400 per tonne CFR India, though official tender outcomes are still awaited.
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