Russia sets record for fertilizer shipments to India - Reuters

Indian workers unload a wagon loaded with mineral fertilizers

Russia has received a major buyer that could replace European customers, chemical industry officials say.

Russia became India's largest fertilizer supplier for the first time in the first half of fiscal year 2022/23, with over a fifth of the market share. This is reported Reuters on Monday, November 21st.

Fertilizer imports into the country from Russia rose 371% to a record 2.15 million tons in the first six months of the fiscal year that began April 1, a senior government official said.

"India has struggled to get fertilizer at reasonable prices since the conflict between Russia and Ukraine escalated. Russian supplies were on time and at reasonable prices. This helped us avoid a possible shortage," he said.

Fertilizer prices on the world market have jumped since March after the West imposed sanctions against fertilizer supplies from Russia and Belarus. Together, these two countries accounted for more than 40% of global potash exports last year. Russia accounted for about 22% of world exports of ammonia, 14% of world exports of urea and about 14% of monoammonium phosphate (MAP) - all major types of fertilizers.

"India has at times received discounts of more than $70 a tonne over world prices. Russia has gained a major buyer that could replace European customers," said a senior industry official who negotiates with overseas suppliers on behalf of Indian buyers.

A surge in supplies from Russia halved China's fertilizer exports to India to 1.78 million tonnes in the first half of 2022/23. Exports from other countries such as Jordan, Egypt and the UAE also fell.

In fiscal year 2021/22, Russia's share of Indian imports was about 6%, while China's was 24%. Russia's market share jumped to 21% in the first half of 2022/23, surpassing China as India's largest supplier, the official said.

India's total fertilizer imports in the first half of 2022/23 fell by 2.4% year-on-year to 10.27 million tonnes, but in value terms, imports over the period rose 59% to $7.4 billion.

Recall, Indian Foreign Minister Subramanyam Jaishankar said that his country will continue to buy Russian oil, as it is profitable.

Earlier, the media learned that after the introduction of EU sanctions on the import of Russian coal, Turkey, India and China, as well as African countries, are buying it at a reduced price.