China Eases Urea Export Ban, Sources Report

China Eases Urea Export Ban, Sources Report

In a significant development, China has reportedly eased its export ban on urea, a crucial agricultural fertilizer. The move comes amidst ongoing trade tensions and a recent halt in specialty fertilizer exports to India. According to industry executives, China has resumed shipments of urea to India, although the exact timeline and volume remain unclear.

The decision to ease the urea export ban follows a period of restrictions and inspections that have impacted India's supply of specialty fertilizers. India relies on China for approximately 80% of these chemicals, which are vital for enhancing the production of fruits and vegetables. The halt in shipments has raised concerns about potential retaliatory measures and the escalation of tensions between the two countries.

The specialty fertilizer market in India is expected to grow significantly in the coming years. According to the Fertilizer Association of India (FAI), the market for micronutrient fertilizers is projected to cross $1 billion by 2029, growing at a compound annual growth rate (CAGR) of 9.2%. Similarly, the biostimulants market is expected to reach $734 million by 2029, with a CAGR of 15.6%, and the organic fertilizer market is predicted to increase to $1.13 billion by 2032, at a CAGR of 7%.

Despite the recent challenges, India is exploring alternative options for importing these fertilizers. While countries like Jordan and Europe can serve as potential sources, the challenge lies in ensuring timely delivery. India does not currently have the technology to produce specialty fertilizers in the volumes needed, making it unviable for companies to set up local manufacturing facilities.

The easing of the urea export ban by China is a welcome development for India's agricultural sector, which has been grappling with supply chain disruptions. However, the long-term implications of the ongoing trade tensions and the potential for further restrictions remain a concern for both countries.

References:
[1] https://economictimes.indiatimes.com/news/economy/agriculture/after-magnets-china-now-plants-agriculture-barrier-for-india/articleshow/122076927.cms