China reportedly chokes fertiliser supply to India amid trade tensions, puts cropping season at risk

India, which depends on China for 80% of these high-efficiency nutrients, now faces a critical shortfall just ahead of peak cropping season

India is facing an unexpected and worrying disruption in its supply of specialty fertilisers, with China quietly halting shipments to the country for over two months, according to a report by the Economic Times. These fertilisers, crucial for boosting yields of high-value crops like fruits and vegetables, are now caught in what seems to be a silent trade war between the two neighbours.

No official ban, but zero inspections

While there is no formal export ban in place, Chinese authorities have effectively blocked exports by not clearing shipments meant for India, said top executives of large importing companies. Economic Times cited industry sources who said shipments from Chinese factories are now subject to tight government inspections, but only for India. Other countries continue to receive fertiliser consignments from China as usual.

"This time it is a complete halt," said Rajib Chakraborty, president of the Soluble Fertilizer Industry Association (SFIA), in the ET report. “China has been restricting supplies to India for the past 4–5 years, but never like this.”

India’s heavy dependence on China

India imports nearly 80 percent of its specialty fertilisers, such as water-soluble nutrients, liquid foliar feeds, slow- and controlled-release variants, and bio-stimulants, from China. The country typically imports around 150,000 to 160,000 tonnes of these high-efficiency nutrients during the June to December cropping period, according to industry estimates cited by ET.

These fertilisers are not part of India’s subsidised fertiliser programme and are mainly used for high-value crops and precision farming. They help enhance yields, improve soil health, and reduce environmental impact.

Geopolitics behind the squeeze?

This move comes amid deteriorating diplomatic ties between India and China, which have worsened over the past five years due to border tensions and strategic distrust, including India’s scrutiny of Chinese investments and China’s support for Pakistan.

ET pointed out that China has similarly restricted exports of rare earth magnets and other critical materials, often seen as retaliation for trade curbs and tariffs by other nations. The fertiliser squeeze may well be part of this pattern.

Domestic manufacturing still not ready

While demand for specialty fertilisers is rising sharply in India, the country still lacks domestic manufacturing capacity to meet it. So far, volumes have been too low to make local production viable. However, that may soon change.

“Specialty fertilisers are now replacing primary fertilisers, increasing their consumption,” Chakraborty said. As a result, interest in setting up manufacturing units in India is growing, he added.

Companies like Deepak Fertilisers, Paradeep Phosphates, and Nagarjuna Fertilisers are among those operating in this segment.

Can India find new suppliers?

Industry experts told Economic Times that India could potentially turn to Jordan or Europe for alternative supplies. But time is of the essence.

“Landing these fertilisers in time for the cropping season is the main challenge,” a senior official from a global fertiliser company told ET.