'China testing economic sanctions': Ex-Foreign Secretary as Beijing blocks specialty fertilisers export to India

Former Foreign Secretary Vijay Gokhale on Thursday said China appears to be testing low-key economic sanctions against India, responding to a report that Beijing has halted shipments of specialty fertilisers. Reacting to the development on X, Gokhale noted: "China is testing economic sanctions in low-key way to judge how India reacts. Bears very close watching."

Gokhale's remark came after The Economic Times reported that China had stopped exporting specialty fertilisers to India for the past two months, while continuing shipments to other countries. China is a key global supplier of agricultural inputs, and India imports nearly 80% of its specialty fertilisers from Chinese manufacturers.

According to the report, Rajib Chakraborty, president of the Soluble Fertilizer Industry Association (SFIA), said that China has been restricting suppliers of specialty fertilisers to India for the last four to five years. "However, this time it is a complete halt."

The report added that while there is no formal ban, shipments to India have stalled due to a lack of clearance from Chinese authorities. Inspections and procedural delays are being used as a barrier to export, in a pattern similar to earlier Chinese restrictions on rare earths and magnets.

Specialty fertilisers are critical for enhancing crop yield, soil health, and nutrient efficiency. These include water-soluble fertilisers, micronutrients, nano fertilisers, biostimulants, and other non-subsidised inputs. India typically imports 150,000–160,000 tonnes of these during the June–December cycle.

China's export halt comes after a similar move earlier when it restricted rare earth magnet shipments to India. In response, Commerce Minister Piyush Goyal had described the disruption as "a wake-up call" and said India was working to reduce dependence on China through domestic capacity building, international sourcing, and policy-level interventions.

"Obviously, there are issues around the stopping of permanent magnets from China to India, which will affect our auto sector, especially two-wheelers and other industries," he stated. "Some companies have submitted applications [to continue imports], and we hope good sense will prevail, and approvals will be granted. But at the same time, we are working on several tracks — sourcing from alternate countries, and accelerating our own production capacities, including through Indian Rare Earths Ltd," Goyal explained. 

"India is actively working with stakeholders to develop domestic capacity and reduce dependence on China," Goyal said in Bern on June 9. "This is a wake-up call for those who have become overly reliant on certain geographies...With India, the world knows they will not have to suffer such disruptions."