China Halts Specialty Fertilizers to India
China has paused shipments of specialty fertilizers to India, crucial for enhancing yields of fruits, vegetables, and other high-value crops. This interruption has persisted for the past two months, despite China continuing exports to other countries.
Extent of Dependency
- India imports approximately 80% of its specialty fertilizers from China.
- The halt is part of a longer trend of restricting supplies over the past four to five years.
Inspection and Restrictions
Chinese shipments are subject to government inspections, which have been used to block exports to India without formal bans. This mirrors China's approach to restricting exports of key materials, amidst geopolitical tensions, including border disputes and support for Pakistan.
Local Production Challenges
- Specialty fertilizers include water-soluble, controlled release, slow-release, microutrient, fortified, customised, nano fertilizers, bio-stimulants, and organic fertilizers.
- India imports 150,000-160,000 tonnes of these fertilizers between June-December.
- These fertilizers improve yield, soil health, and nutrient efficiency while reducing environmental impact.
Market and Growth
- Micronutrient fertilizers in India are projected to surpass $1 billion by 2029 at a CAGR of 9.2%.
- Biostimulants are expected to grow to $734 million by 2029 with a CAGR of 15.6%.
- The organic fertilizer market is anticipated to reach $1.13 billion by 2032, growing at a CAGR of 7%.
Production and Alternatives
- Currently, India lacks the technology and volume to produce specialty fertilizers domestically, making local production unviable.
- There is increasing interest in setting up local manufacturing facilities, as specialty fertilizers begin replacing primary fertilizers.
- Alternative import sources like Jordan and Europe are considered, though timely logistics remain a challenge.
