Middle East War Causes Fertilizer Crisis; India Accelerates Joint Urea Plant Construction with Russia
Amidst a fertilizer crisis caused by the Middle East war and the blockade of the Strait of Hormuz, India is accelerating its collaboration with Russia to build a urea plant. The new facility, with an annual production capacity of 2 million tons, is expected to commence operations within two years, aiming to diversify India's urea sources and stabilize prices.
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- 📰 Published: April 28, 2026 at 19:48
- 🔍 Collected: April 28, 2026 at 20:01 (13 min after Published)
- 🤖 AI Analyzed: April 28, 2026 at 20:05 (3 min after Collected)
Middle East War Key News
Central News Agency (Reporter Li Jin-wei, New Delhi, 28th) India's agriculture heavily relies on chemical fertilizers, but the Middle East war has led to the blockade of the Strait of Hormuz, affecting urea supply. Recently, India has accelerated cooperation with Russia, planning to build a urea plant with an annual production of 2 million tons within two years.
The war between the United States, Israel, and Iran has led to the blockade of the Strait of Hormuz, causing a shortage of urea, a critical raw material for fertilizer production in India.
India Today reported that Indian agriculture is highly dependent on chemical fertilizers, and urea is an indispensable part. India needs to use 40 million tons of urea annually but can only produce about 30 million tons, with a gap of 10 million tons relying on imports. India imports urea from multiple countries, but imports from Middle Eastern countries account for about 71% of the total imports. After the Strait of Hormuz was blocked, urea prices in India fluctuated significantly. To solve the current predicament, India is accelerating the joint construction of a urea plant with Russia.
The new urea plant in Russia is expected to be operational within two years, with an estimated annual production of around 2 million tons. This will help India achieve its goal of diversifying urea sources. Once the new plant starts operating, it will not only ensure a stable supply of urea but also minimize large price fluctuations.
In this cooperation project, three Indian companies—Indian Potash Limited, Rashtriya Chemicals and Fertilizers Limited, and National Fertilizers Limited—will jointly invest 100 billion rupees (approximately NT$33.346 billion); Russia's chemical product manufacturing company Uralchem Group will also invest 100 billion rubles.
India Today pointed out that Indian farmers are highly dependent on urea. The national urea consumption in India in 2025 is estimated to reach 38.7 million tons, while India's urea production in 2025 will be about 30.6 million tons, with the remaining 8.1 million tons relying on imports. The total urea imports in 2025 amounted to US$2.3 billion (approximately NT$72.55 billion).
The Indian government recently approved that Indian Potash Limited will import 2.5 million tons of urea from Russia, Algeria, and Nigeria, among other places, starting in 2026.
India urgently needs urea, as this fertilizer can increase crop yields by 20% to 50%. As the blockade of the Strait of Hormuz impacts global fertilizer supply, India is cooperating with Russia to try to reduce the risks faced by the supply chain, providing a stable and long-term buffer against price volatility caused by geopolitics. (Editor: Hsieh Yi-hsuan) 1150428
Central News Agency (Reporter Li Jin-wei, New Delhi, 28th) India's agriculture heavily relies on chemical fertilizers, but the Middle East war has led to the blockade of the Strait of Hormuz, affecting urea supply. Recently, India has accelerated cooperation with Russia, planning to build a urea plant with an annual production of 2 million tons within two years.
The war between the United States, Israel, and Iran has led to the blockade of the Strait of Hormuz, causing a shortage of urea, a critical raw material for fertilizer production in India.
India Today reported that Indian agriculture is highly dependent on chemical fertilizers, and urea is an indispensable part. India needs to use 40 million tons of urea annually but can only produce about 30 million tons, with a gap of 10 million tons relying on imports. India imports urea from multiple countries, but imports from Middle Eastern countries account for about 71% of the total imports. After the Strait of Hormuz was blocked, urea prices in India fluctuated significantly. To solve the current predicament, India is accelerating the joint construction of a urea plant with Russia.
The new urea plant in Russia is expected to be operational within two years, with an estimated annual production of around 2 million tons. This will help India achieve its goal of diversifying urea sources. Once the new plant starts operating, it will not only ensure a stable supply of urea but also minimize large price fluctuations.
In this cooperation project, three Indian companies—Indian Potash Limited, Rashtriya Chemicals and Fertilizers Limited, and National Fertilizers Limited—will jointly invest 100 billion rupees (approximately NT$33.346 billion); Russia's chemical product manufacturing company Uralchem Group will also invest 100 billion rubles.
India Today pointed out that Indian farmers are highly dependent on urea. The national urea consumption in India in 2025 is estimated to reach 38.7 million tons, while India's urea production in 2025 will be about 30.6 million tons, with the remaining 8.1 million tons relying on imports. The total urea imports in 2025 amounted to US$2.3 billion (approximately NT$72.55 billion).
The Indian government recently approved that Indian Potash Limited will import 2.5 million tons of urea from Russia, Algeria, and Nigeria, among other places, starting in 2026.
India urgently needs urea, as this fertilizer can increase crop yields by 20% to 50%. As the blockade of the Strait of Hormuz impacts global fertilizer supply, India is cooperating with Russia to try to reduce the risks faced by the supply chain, providing a stable and long-term buffer against price volatility caused by geopolitics. (Editor: Hsieh Yi-hsuan) 1150428