Key points
- China continues to supply fertilisers to other countries
- Indian shipments have come to a complete standstill
- India relies heavily on China for these products
ISLAMABAD: China has halted shipments of specialty fertilisers to India for the past two months, disrupting supplies of critical agricultural inputs that help boost the yields of high-value crops like fruits and vegetables.
The move is being seen as a significant escalation in China’s unofficial trade restrictions on India, coming after similar curbs on exports of rare earth magnets.
While China continues to supply these fertilisers to other countries, Indian shipments have come to a complete standstill.
“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,” Rajib Chakraborty, president of the Soluble Fertiliser Industry Association (SFIA), told The Economic Times.
India relies heavily on China for these products, importing nearly 80 per cent of its specialty fertiliser requirements from the country.
No official export ban
Despite no official export ban, Chinese authorities have reportedly stopped inspecting shipments bound for India, effectively blocking the exports through procedural delays.
These fertilisers — including water-soluble, liquid, micronutrient, and customised types — are not subsidised by the Indian government and are key to increasing crop productivity and soil health. Industry estimates suggest India typically imports 150,000 to 160,000 tonnes of these fertilisers between June and December.
Growing tensions
The halt comes amid growing tensions between the two neighbours, including ongoing border disputes and strategic rivalry. India, in response to security concerns, has also tightened rules for foreign investments from countries with which it shares land borders — measures widely seen as directed at China.
Despite the current supply freeze, India’s specialty fertiliser market continues to grow. According to the Fertiliser Association of India (FAI), the country’s micronutrient fertiliser market is projected to exceed $1 billion by 2029, while the biostimulant and organic fertiliser sectors are expected to reach $734 million and $1.13 billion, respectively, over the next decade.
