India sought 5.3 lakh tonnes of ammonia, global sellers offered less than half. What it means?
Ammonia is a critical raw material for the fertiliser industry and is widely used in manufacturing nitrogen-based fertilisers. It is also used alongside potash in blended fertiliser products that help improve crop productivity.
- May 18, 2026,
- Updated May 18, 2026 10:00 PM IST
India’s latest ammonia import tender has exposed the severity of the global supply squeeze, with suppliers unable to offer even half the quantity sought despite sharply elevated prices, according to market intelligence firm CRU Group.
Indian Potash Limited (IPL) floated a consolidated tender seeking 521,000 tonnes of ammonia, but received bids totalling only 239,000 tonnes, CRU Group said in a market alert.
The shortfall was stark across both coasts. Suppliers offered 138,000 tonnes for East Coast India against a requirement of 370,000 tonnes, while bids for the west coast stood at 101,000 tonnes against demand for 151,000 tonnes.
The weak response suggests the issue is no longer just about soaring prices — availability itself has become constrained.
Russia-Ukraine & West Asia war impact
The recent geopolitical shocks in West Asia and the de facto closure of the Strait of Hormuz have sent global fertilizer input costs soaring.
The tender also reflects the sharp escalation in fertiliser-related commodity prices since the Russia-Ukraine conflict disrupted global trade flows and energy markets.
MUST READ | Hormuz disruption hits fertiliser trade: Could India's Kharif season be affected?
Urea prices, which were around $510 per tonne before the war, surged to nearly $950 per tonne afterwards. Ammonia prices climbed from roughly $500 per tonne to the $900 range, while sulphur prices rose from around $500 per tonne to the $800s.
The spread in the latest tender highlighted the uncertainty in the market. The lowest fixed-price offer came in at $890 per tonne CFR, while the highest was quoted at $1,030 per tonne CFR.
CRU Group said constrained spot availability and differing views on near-term ammonia prices contributed to the weak participation.
Why ammonia matters for potash & fertiliser production
Ammonia is a critical raw material for the fertiliser industry and is widely used in manufacturing nitrogen-based fertilisers. It is also used alongside potash in blended fertiliser products that help improve crop productivity.
India depends heavily on imported fertiliser raw materials to support its agricultural sector. Any disruption in ammonia availability can directly affect fertiliser production costs and supplies ahead of key sowing seasons.
DO CHECKOUT | 'Burning more energy to produce less': Hormuz-linked LNG supply cut hits urea output across India
According to CRU Group report, Agrifields DMCC submitted the lowest east coast offer at $890 per tonne CFR for a 15,000-tonne parcel, while also quoting west coast cargoes at $1,030 per tonne CFR.
Compagnie Indo Francaise de Commerce (CIFC) offered the most competitive west coast level at $915 per tonne CFR for Kandla. Midgulf International submitted a 30,000-tonne offer at $975 per tonne CFR, while Trafigura quoted 25,000 tonnes of US-origin cargo at $990 per tonne CFR.
Fertiglobe was the only participant to submit formula-linked offers tied to FOB Middle East and FOB North Africa benchmarks.
Modi govt has pushed for lower fertiliser usage
The development also comes as Prime Minister Narendra Modi has repeatedly called for reducing excessive fertiliser consumption and promoting balanced nutrient usage in agriculture.
The government has been encouraging alternatives such as nano urea and more efficient fertiliser application to reduce import dependence and contain subsidy burdens.
However, India’s continued dependence on imported ammonia and other fertiliser inputs means global supply disruptions still have a direct impact on domestic availability and costs.
CRU Group said counter-offers and negotiations with shortlisted participants are expected in the coming days, with bids remaining valid until May 25.
India’s latest ammonia import tender has exposed the severity of the global supply squeeze, with suppliers unable to offer even half the quantity sought despite sharply elevated prices, according to market intelligence firm CRU Group.
Indian Potash Limited (IPL) floated a consolidated tender seeking 521,000 tonnes of ammonia, but received bids totalling only 239,000 tonnes, CRU Group said in a market alert.
The shortfall was stark across both coasts. Suppliers offered 138,000 tonnes for East Coast India against a requirement of 370,000 tonnes, while bids for the west coast stood at 101,000 tonnes against demand for 151,000 tonnes.
The weak response suggests the issue is no longer just about soaring prices — availability itself has become constrained.
Russia-Ukraine & West Asia war impact
The recent geopolitical shocks in West Asia and the de facto closure of the Strait of Hormuz have sent global fertilizer input costs soaring.
The tender also reflects the sharp escalation in fertiliser-related commodity prices since the Russia-Ukraine conflict disrupted global trade flows and energy markets.
MUST READ | Hormuz disruption hits fertiliser trade: Could India's Kharif season be affected?
Urea prices, which were around $510 per tonne before the war, surged to nearly $950 per tonne afterwards. Ammonia prices climbed from roughly $500 per tonne to the $900 range, while sulphur prices rose from around $500 per tonne to the $800s.
The spread in the latest tender highlighted the uncertainty in the market. The lowest fixed-price offer came in at $890 per tonne CFR, while the highest was quoted at $1,030 per tonne CFR.
CRU Group said constrained spot availability and differing views on near-term ammonia prices contributed to the weak participation.
Why ammonia matters for potash & fertiliser production
Ammonia is a critical raw material for the fertiliser industry and is widely used in manufacturing nitrogen-based fertilisers. It is also used alongside potash in blended fertiliser products that help improve crop productivity.
India depends heavily on imported fertiliser raw materials to support its agricultural sector. Any disruption in ammonia availability can directly affect fertiliser production costs and supplies ahead of key sowing seasons.
DO CHECKOUT | 'Burning more energy to produce less': Hormuz-linked LNG supply cut hits urea output across India
According to CRU Group report, Agrifields DMCC submitted the lowest east coast offer at $890 per tonne CFR for a 15,000-tonne parcel, while also quoting west coast cargoes at $1,030 per tonne CFR.
Compagnie Indo Francaise de Commerce (CIFC) offered the most competitive west coast level at $915 per tonne CFR for Kandla. Midgulf International submitted a 30,000-tonne offer at $975 per tonne CFR, while Trafigura quoted 25,000 tonnes of US-origin cargo at $990 per tonne CFR.
Fertiglobe was the only participant to submit formula-linked offers tied to FOB Middle East and FOB North Africa benchmarks.
Modi govt has pushed for lower fertiliser usage
The development also comes as Prime Minister Narendra Modi has repeatedly called for reducing excessive fertiliser consumption and promoting balanced nutrient usage in agriculture.
The government has been encouraging alternatives such as nano urea and more efficient fertiliser application to reduce import dependence and contain subsidy burdens.
However, India’s continued dependence on imported ammonia and other fertiliser inputs means global supply disruptions still have a direct impact on domestic availability and costs.
CRU Group said counter-offers and negotiations with shortlisted participants are expected in the coming days, with bids remaining valid until May 25.