Urea prices drop 40% in June after May spike, easing concerns for India's fertiliser supply

NEW DELHI: The recent spike in global urea prices moderated in June, offering relief to the fertiliser sector. According to government data, international urea prices averaged $572 per tonne in June, a 40 per cent decline from May levels. However, prices remain 45 per cent higher than the same month last year, when they stood at $395 per tonne.

Industry experts attribute the price correction to a partial lifting of export restrictions by China and fading fears of prolonged war-induced supply disruptions. China, a major urea producer, had earlier imposed export curbs, contributing to price volatility. The easing of these measures has helped stabilise the market.

In India, the fertiliser department's June bulletin shows that the country has a comfortable stock of urea for the current kharif season. Domestic production in May and June exceeded targets, providing additional comfort to the government. A senior industry executive stated, 'We are keeping a close watch on developments in West Asia and their impact on the future supply chain.'

While urea prices have eased, other fertiliser inputs have seen significant price increases compared to last year. Diammonium phosphate, potash, and phosphoric acid prices are higher than June 2025 levels. Sulphur recorded the sharpest rise, at $1,050 per tonne, a 265 per cent increase year-on-year. Ammonia prices are also 95 per cent higher than last year.

These trends highlight ongoing global supply chain challenges, partly linked to geopolitical tensions. India, as a major importer of fertilisers, remains vigilant to ensure adequate supply for its agricultural sector.