Russia-Ukraine: Impact On Fertilizer Trade, Agriculture Sector In India May Be Affected!
The ongoing Russia Ukraine war is affecting the supplies. Sea trade is getting disrupted, posing a risk of rising inflation. At the same time, there are many such items without which production can also slow down or even come to an end. Exports are being affected from both Ukraine and Russia. There are many such items in which Russia dominates the exports. Among such items one is fertilizer, whose global supply is getting disrupted in India as well.
The agriculture sector in India has registered positive growth even during the Covid-19 pandemic and its growth is increasing continuously.
As India is dependent on imports for most of their fertilizer needs, the closure of the Russian and Ukranian markets for fertilizers is bound to have a major significant impact on India. In FY 2021, India made 17% of its total MOP (Muriate of Potash) imports from Russia and India’s NPK (Nitrogen, Phosphorus and Potassium) imports from Russia has been 60%. It is clear that due to the disturbance in the supply of fertilizers, Indian agriculture sector will affect the most. According to the data presented in the Lok Sabha, the import of four types of fertilizers from Russia has almost doubled during the last three years. India imported 10.61 lakh tonne of fertilizer from Russia during FY 2019, which increased to 19.15 lakh tonne in FY 2021. These include Urea, DAP (Diammonium Phosphate), MOP (Muriate of Potash) and NPK (Nitrogen, Phosphorous and Potassium). Alexis Maxwell, analyst at Bloomberg Fertilizer Analysis and news publication Green Markets, says, “Russia is a major low-cost exporter of a variety of crop nutrients. Their fertilizers are exported to all the continents of the world. No other country has such a vast system of easily exportable fertilizer supply.”
As India is dependent on imports for most of their fertilizer needs, the closure of the Russian and Ukranian markets for fertilizers is bound to have a major significant impact on India. In FY 2021, India made 17% of its total MOP (Muriate of Potash) imports from Russia and India’s NPK (Nitrogen, Phosphorus and Potassium) imports from Russia has been 60%. It is clear that due to the disturbance in the supply of fertilizers, Indian agriculture sector will affect the most. According to the data presented in the Lok Sabha, the import of four types of fertilizers from Russia has almost doubled during the last three years. India imported 10.61 lakh tonne of fertilizer from Russia during FY 2019, which increased to 19.15 lakh tonne in FY 2021. These include Urea, DAP (Diammonium Phosphate), MOP (Muriate of Potash) and NPK (Nitrogen, Phosphorous and Potassium). Alexis Maxwell, analyst at Bloomberg Fertilizer Analysis and news publication Green Markets, says, “Russia is a major low-cost exporter of a variety of crop nutrients. Their fertilizers are exported to all the continents of the world. No other country has such a vast system of easily exportable fertilizer supply.”
Latest Videos
