China Halts Specialty Fertiliser Shipments to India, Raising Agri Growth Concerns

New Delhi, Jun 26 (KNN) China has effectively suspended exports of specialty fertilisers to India over the past two months, raising red flags within India’s agricultural sector.

While no formal ban has been declared, industry insiders say Chinese authorities have withheld inspection clearances on consignments destined for India, resulting in a de facto embargo.

India depends heavily on China for approximately 80 per cent of its specialty fertiliser imports—vital nutrients such as water-soluble, micronutrient, nano, and bio-stimulant fertilisers essential for high-value fruit and vegetable crops.

Annually, India typically imports around 150,000–160,000 tonnes during the June–December sowing window.

Rajib Chakraborty, President of the Soluble Fertilizer Industry Association, noted that while China had imposed export restrictions previously, this marks the first complete halt. He warned that without these inputs, crop yields may be negatively affected.

The issue comes amid broader bilateral tensions—China previously imposed export curbs on rare-earth magnets and tunnel-boring machines, viewed by India as retaliatory trade measures.

Domestically, India’s capacity to produce specialty fertilisers remains weak due to limited technology and low historical demand.

However, growing recognition of these inputs’ importance has sparked investments from major players like Deepak Fertilizers, Paradeep, and Nagarjuna.

In response, Indian firms are exploring alternative sourcing options from Jordan and European nations, though logistical and timing issues persist.

Meanwhile, industry advocates call for domestic-friendly policies to simplify licensing and reduce dependency on imports.

With India’s speciality fertiliser market expected to exceed USD 1 billion by 2029—growing at a CAGR of about 9 per cent—experts warn this disruption could slow momentum just as it gains traction.

(KNN Bureau)