Saturday, June 28, 2025

Yield loss and food inflation risks loom as China halts specialty fertiliser exports to India

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The sudden stop in specialty fertiliser shipments from China to India could soon translate into lower agricultural yields and higher fruit and vegetable prices, warns Rajib Chakraborty, National President of the Soluble Fertiliser Industry Association (SIFA).He said farmers may be forced to switch to traditional fertilisers like urea and DAP due to soaring costs and reduced availability of high-efficiency inputs. “This shift actually decreases yield. And when yield decreases, obviously, the prices of vegetables and fruits go up,” Chakraborty told CNBC-TV18. “This has happened in the past too, and was one of the reasons why tomato prices spiked in 2024.”
Chakraborty noted that specialty fertilisers—such as water-soluble fertilisers, organic fertilisers, micronutrients, and biostimulants—play a crucial role in precision farming and export-oriented agriculture. These fertilisers improve crop quality, shelf life, and profitability, and are gradually replacing subsidised fertilisers in many farming systems. “They are high-yielding, low in residue, and high in quality. They make fruits and vegetables exportable,” he said.
With about 80% of India’s specialty fertiliser imports coming from China, the supply disruption has created alarm within the industry. According to Chakraborty, Chinese authorities have not officially banned exports to India but are blocking them through procedural delays. “The CIQ arrangement—which is the inspection arrangement in China—is not getting approval from the Chinese authorities. So, consignments are not reaching Indian ports,” he said. While other countries are still receiving shipments, India appears to be an exception, with no written explanation provided by Beijing.In response, Indian industry bodies are now scrambling to secure alternate sources. “We are approaching various suppliers outside China, organising trade fairs, and speaking with associations abroad. Indian embassies are also supporting us,” he said.

The timing offers a brief cushion—specialty fertiliser use is minimal in the current kharif season, which relies more on subsidised products. But demand will surge from September onwards. “We have three to four months before peak consumption starts, but we need to stabilise supply before that,” Chakraborty warned.

The halt in fertiliser exports from China comes at a time when India is already facing restricted access to other critical imports like rare earth magnets. While China has imposed similar curbs globally, Chakraborty noted that the fertiliser supply issue appears to be India-specific in this instance.

Watch accompanying video for entire conversation.

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