India Increases Urea Imports from Egypt, Algeria, and Nigeria

India has notably escalated its urea imports from three African nations: Egypt, Algeria, and Nigeria. This increase comes as the nation sources around 1.1 million tonnes of the fertiliser due to disruption of traditional supply routes around the Strait of Hormuz. As a result, India's fertiliser subsidy bill is heading towards ₹3.54 trillion ($37.1 billion). According to data released by the Ministry of Commerce and cited by Mint, India imported 2.5 million tonnes of urea during the first quarter of the current financial year. Among the total, Egypt, Algeria, Nigeria, and Georgia contributed 52%. Specifically, Egypt provided 609,000 tonnes, while Algeria and Nigeria contributed 245,000 tonnes and 244,000 tonnes, respectively. Georgia supplied an additional 211,000 tonnes.

This substantial increase from the previous year, where no urea was imported from these countries, underscores Africa’s expanding significance in India's fertiliser market. Prominent producers in these nations include MOPCO and Abu Qir in Egypt, Sorfert and AOA in Algeria, and Dangote Fertiliser and Indorama Eleme in Nigeria.

The diversification of India’s supply sources has been accelerated by ongoing disruptions near the Strait of Hormuz, a key shipping route for fertilisers and energy products. Historically, India has depended heavily on Gulf suppliers, accounting for over 40% of its urea and phosphatic fertiliser imports from that area, thereby making the country vulnerable to supply chain disturbances. As geopolitical tensions have influenced vessel movements and freight costs, New Delhi has opted to secure alternative supplies from Egypt, Algeria, and Nigeria, along with various Asian and European markets.

Despite continuing to receive some shipments from Gulf suppliers, the challenges have reinforced India’s efforts to broaden its supplier base. The latest imports reflect a wider trend of increasing shipments from Africa to India. During the 2025-26 financial year, Nigeria exported 447,090 tonnes of urea, with Algeria providing 217,059 tonnes and Egypt sending 194,830 tonnes. Together with Georgia, these nations represented 8.8% of India's total urea imports of 11.2 million tonnes.

In spite of operating 33 urea production plants with an overall capacity of 26.9 million tonnes, India still relies on imports for approximately 20% of its yearly requirements, creating increased opportunities for African producers. The nation is contending with a surge in fertiliser costs as it expands its supplier network. The Ministry of Fertilisers has suggested increasing government subsidies from an initial ₹1.77 trillion ($18.6 billion) to ₹3.54 trillion ($37.1 billion) in response to escalating global prices and geopolitical uncertainties.

The subsidy bill had already surpassed ₹2.17 trillion ($22.8 billion) in the previous financial year. Additionally, market data indicates that the price of a 45kg bag of fertiliser has risen significantly, increasing from ₹2,900 ($30) to ₹4,300 ($45). Concurrently, India has adjusted its fertiliser demand projections downwards following less-than-ideal rainfall forecasts. The overall requirements for the current kharif season have been revised to 38.39 million tonnes from an earlier estimate of 39.05 million tonnes, thereby reducing urea demand projections by approximately 400,000 tonnes to 19 million tonnes. Nevertheless, the increased importation from Egypt, Algeria, and Nigeria demonstrates these countries' strengthening positions in India's fertiliser market as the country aims to reduce its reliance on Middle Eastern suppliers.