China Halts Exports Of Specialty Fertilisers To India Amid Rising Tensions, Raising Supply Concerns

China has stopped shipping specialty fertilisers - essential for boosting the yields of high-value crops such as fruits and vegetables - to India for the past two months, according to senior executives at several major importing firms.

Despite continuing to export these agricultural inputs to other nations, Chinese exports to India have come to a complete standstill, reported the Economic Times.

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India depends on China for around 80% of its supply of these chemicals.

"China has been limiting supplies of specialty fertilisers to India for the last four to five years. However, this time there has been a complete halt," said Rajib Chakraborty, President of the Soluble Fertilizer Industry Association (SFIA).

Although shipments are supposed to undergo inspection by Chinese authorities, those destined for India are reportedly being delayed or blocked through procedural hurdles, rather than through an official ban, according to individuals familiar with the matter.

This move appears to reflect broader trade tensions, with China also restricting exports of critical raw materials such as rare earth magnets - a likely response to tariffs and curbs imposed on Chinese imports.

India, in turn, has made prior government approval mandatory for investments from countries with which it shares a land border, specifically targeting its northern neighbour.

Domestic Production Remains Unviable - For Now

These trade frictions come amid five years of strained relations between the two countries, including border clashes and China's continued support for Pakistan.

Specialty fertilisers - unlike their subsidised counterparts - are non-subsidised, value-added soil nutrients. They include water-soluble fertilisers (WSFs), liquid fertilisers for foliar and fertigation use, controlled-release fertilisers (CRFs), slow-release fertilisers (SRFs), micronutrient and fortified fertilisers, customised and nano fertilisers, bio-stimulants, and organic options.

India generally imports between 150,000 and 160,000 tonnes of these fertilisers between June and December, according to industry estimates.

The market for micronutrient fertilisers in India is projected to surpass $1 billion by 2029, with a compound annual growth rate (CAGR) of 9.2%, according to the Fertilizer Association of India (FAI). Similarly, the biostimulant segment is expected to reach $734 million by 2029 (CAGR of 15.6%), while the organic fertiliser market is forecast to grow to $1.13 billion by 2032 (CAGR of 7%).

These fertilisers are known for improving crop productivity, enhancing soil health, and increasing nutrient-use efficiency, while also causing less environmental harm than conventional fertilisers.

Major Indian fertiliser firms like Deepak Fertilisers, Paradeep Phosphates and Nagarjuna Fertilizers operate in this space. However, due to historically low demand volumes, India has yet to develop the necessary technology or scale for local production, making it economically unfeasible until now.

"Specialty fertilisers are gradually replacing primary fertilisers, which is pushing up demand," said Chakraborty, adding that a growing number of companies are now exploring the possibility of establishing manufacturing units.

In the interim, India may look to alternative suppliers.

"While other sources like Jordan and Europe could be considered, the difficulty lies in ensuring timely delivery," noted a senior executive from a multinational fertiliser company.

While commodity fertilisers such as urea, diammonium phosphate (DAP), and muriate of potash (MOP) are broadly applied, specialty fertilisers offer precise nutrient delivery and are tailored to specific agricultural needs.