Food & Climate
Several countries, including India and Britain, are trying to deal with the current fertiliser crisis caused by the war in Iran and the closure of the Strait of Hormuz.
India should diversify the sources of its fertiliser raw material and final product imports to reduce excessive dependence on a limited set of countries to strengthen fertiliser supply security, suggests a new policy brief published by Delhi based think tank Indian Council for Research on International Economic Relations (ICRIER).
The policy brief has been prepared in the backdrop of rising concerns over disruptions to supplies of natural gas, ammonia, sulphur and finished fertilisers that originate in or transit through the Gulf region, in particular the trade that passes through the Strait of Hormuz, a narrow maritime corridor that handles a significant share of global oil, LNG and fertiliser shipments.
But in UK, NFU president Tom Bradshaw said last week he had met with Defra Secretary of State Emma Reynolds to outline how “volatility in the global energy market has a huge impact on our food supply chains here”, and he said the government is “watching this very closely”, according to a report seen by Food & Climate.
Fertiliser crisis solutions in India
In 2024–25, India consumed about 70.7 million metric tonnes (MMT) of fertiliser products, equivalent to roughly 33 MMT of nutrients (nitrogen (N), phosphorus (P) and potash (K) nutrients).
Fish and chips in UK under fire in the Iran war
India’s effective dependence on global fertiliser supply chains rises to nearly 68–70%, leaving the fertiliser sector, and by extension the country’s food security, highly exposed to geopolitical disruptions and supply shocks”, the (ICRIER) policy brief said.
Stating that strengthening fertiliser supply security must become a strategic policy priority against this backdrop, the researchers sought policy reforms such as the direct transfer of fertiliser subsidies to farmers and gradual price deregulation of macro nutrients to promote balanced fertiliser use and overdependence on import heavy fertilizers.
If this seems too bold a reform in the short run, the researchers suggested an alternative to put quantitative restrictions on sales based on farm size, cropping patterns, and recommended nutrient doses issued by State Agricultural Universities (SAU), according to Furtune India.
Food prices rise
The fertiliser crisis caused by the war in Iran is manifesting itself in the United Kingdom and other countries as rising prices, which will in turn affect food prices.
So, Donald Trump’s war on Iran could cause UK food prices to surge due to the soaring cost of fuel and fertiliser as the Strait of Hormuz – the narrow sea passage south of Iran – remains effectively impassable.
The blockade on fossil fuels through the strait is driving a spike in the cost of nitrogen and phosphate fertilisers – used for growing cereals and vegetables – and means farms now face a twin threat of higher fuel prices for machinery as well as for fertiliser as the conflict in Iran disrupts global supply chains.
Over the past month, the price of urea – a nitrogen fertiliser – has risen by 33.7%, and is up 54.9% compared to the same time last year.
Meanwhile, a number of fertiliser plants in the Middle East have closed because of their inability to obtain the substances required to manufacture it. Natural gas accounts for between 60-80% of the costs associated with the production of nitrogen fertilisers, according to the NFU.
As prices go up, so must what farmers charge. Richard Heady, who farms 700 acres in Buckinghamshire, told The Telegraph: “prices for fertiliser have shot up, but the fact is we need it.” He said he will have to increase the price of a ton of grain from £170 to £220 (a 30% increase) after harvest, in order to cover his costs.
Asia fertiliser supplies threatened, war in Iran halts major exporters
Around 30–35% of the world’s nitrogen fertiliser supply passes through the strait, along with roughly 40–45% of sulphur exports from the Gulf, highlighting just how exposed the market is to regional turmoil.
Key producers such as Qatar Fertiliser Company, Saudi Arabia’s Sabic and the UAE’s Fertiglobe usually play a major role in keeping global supplies moving, making the sudden disruption in the area rapidly felt on agricultural operations far beyond the Middle East.
A UK government spokesperson told The Independent: “We understand and are taking seriously the possible impacts of the Iran war on the food and farming sector.
He added: “At present, we do not expect any impact on food availability for consumers and continue to monitor increases in fertiliser and oil prices, standing reading to take action to protect rural communities”, according to AOL.
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