India shouldn't be in trouble if some country stops export of fertilizer: Piyush Goyal

Commerce Minister Piyush Goyal

Union Commerce Minister Piyush Goyal on Wednesday said that India shouldn't be in trouble if some country stops export of fertilizer and called to establish robust supply chain in fertilisers, insecticide and pesticides.

He said that the Centre did not let fertiliser costs to increase and provided crores in subsidies to protect farmers by keeping fertiliser costs down.

His remarks comes after there were reports that India is facing an unexpected disruption in its supply of specialty fertilisers, with China quietly halting shipments to the country for over two months.

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.

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 citing industry sources reported that 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 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.

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.