India turns to African fertilizer producers as Hormuz disruptions reshape supply chains
The move comes as the conflict involving Iran, Israel and the United States has disrupted shipments through the Strait of Hormuz since late February, exposing vulnerabilities for India as the world’s most populous country, the second-largest fertilizer consumer, and a major agricultural producer.
AFRICA – India is aggressively pivoting toward African fertilizer suppliers to secure its agricultural supply chain as escalating geopolitical conflict and shipping disruptions in the Strait of Hormuz severely choke traditional trade routes from the Middle East.
Data from India’s Commerce Ministry show that the South Asian nation imported over 1.1 million tonnes of urea from Egypt, Algeria, and Nigeria during the first quarter of the fiscal year, a drastic shift, as virtually no imports originated from those African nations during the corresponding period last year.
The strategic reallocation of import orders comes as the closure and near-paralysis of maritime transit through the Strait of Hormuz threatens global trade in crop nutrients.
Before the crisis, the Gulf region supplied around 20% to 30% of India’s urea imports and about 30% of its diammonium phosphate (DAP).
India’s fertilizer industry is also feeling the impact of rising fuel costs, as the country depends on the Middle East for about 50% of its liquefied natural gas imports.
However, with tanker traffic through the strategic waterway down by over 90%, soaring war-risk insurance premiums, and drone strikes disabling key petrochemical facilities in the Gulf, Indian procurement agencies have been forced to fast-track supply chain diversification.
The shift toward diversifying fertilizer sources beyond the Gulf could create new commercial opportunities for African producers. On March 17, it was reported that the United States had also opened discussions with Morocco to secure fertilizer supplies.
Africa gaining ground in supplies
Between April and June 2026, Egypt delivered 609,000 tonnes of urea to India, ahead of Algeria (245,000 tonnes) and Nigeria (244,000 tonnes). Together with the 211,000 tonnes shipped by Georgia, these four suppliers accounted for 52% of the quarter’s imports.
For the entire 2025/2026 fiscal year, Nigeria delivered 447,090 tonnes of urea to India, Algeria 217,059 tonnes, and Egypt 194,830 tonnes. New Delhi also continues to source its supplies from the Gulf and other markets, including Oman, Malaysia, Russia, Turkey, and Vietnam.
The challenge is to reduce exposure to a geographical concentration of supplies. Despite its 33 factories and a national capacity of 26.9 million tons, India still imports approximately 20% of its annual needs.
African producers have emerged as essential partners in filling the deficit. Beyond nitrogenous fertilizers from North and West African suppliers like MOPCO and Abu Qir in Egypt, Sorfert and AOA in Algeria, and Dangote Fertilizer and Indorama Eleme in Nigeria, India is expanding long-term off-take agreements with Moroccan phosphate giants to secure critical diammonium phosphate (DAP) and NPK blends.
Crucially, shipments originating from North and West Africa bypass the Persian Gulf bottleneck entirely, using Atlantic and Cape of Good Hope sea lanes to reach India’s western ports safely.
Some fertilizer companies are also responding by localizing production closer to demand centers. ICL Group has opened a specialty fertilizer manufacturing facility in Maharashtra, India, designed to replicate its advanced production model currently operating in Israel and reduce India’s dependence on cross-border supply chains disrupted by the closure of the Hormuz corridor.
The emergency diversification effort is vital to safeguarding national food security and supporting farmers through the primary Kharif sowing season.
While global market volatility and elevated freight charges have pushed India’s annual agricultural fertilizer subsidy bill toward a record ₹3.54 trillion (US$37.1 billion), the expanded trade linkages with African producers have provided a crucial lifeline.
Ministry officials indicate that long-term investments and joint venture partnerships in African fertilizer manufacturing will remain a central pillar of India’s strategic agricultural policy moving forward.
The pivot to African suppliers is therefore seen as both a short-term contingency and a longer-term strategic realignment of India’s fertilizer import portfolio.
Sign up to HERE receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
