In a strategic shift aimed at diversifying fertilizer import sources and addressing trade imbalances, India is actively considering increasing fertilizer imports from the United States. The move comes amid evolving geopolitical dynamics and persistent global supply chain disruptions.
Reducing Reliance on China and Russia
India’s traditional dependence on China and Russia for fertilizer supplies has come under pressure due to geopolitical tensions and fluctuating availability. India’s overall fertilizer imports declined in FY 2024-25, with significant drops in volumes from both China and Russia. In response, Indian authorities are now seeking alternative and stable partners, identifying the U.S. as a promising supplier of essential agricultural inputs.
A Step Toward Balanced Trade
The United States has voiced concerns over its widening trade deficit with India, prompting ongoing negotiations toward a bilateral trade agreement. Boosting fertilizer exports to India could serve as a meaningful step toward balancing trade relations between the two nations. The potential partnership would also align with the U.S. interest in expanding agricultural exports and enhancing economic ties in the Indo-Pacific region.
Addressing India’s Fertilizer Dependency
India’s reliance on imported fertilizers remains a persistent challenge. In FY 2023-24, the country imported around 70.42 lakh tons of urea, with 18.65 lakh tonnes sourced from China alone. It also brought in 22.58 lakh tonnes of phosphatic and potassic fertilizers from China during the same period.
Although the Indian government is working to revive domestic fertilizer production by restarting several defunct plants, these efforts are still in progress. Until local output meets demand, diversifying import sources is essential for agricultural security.
Toward a Resilient Agri-Supply Chain
By strengthening cooperation with the U.S. in the fertilizer sector, India can reduce
over-dependence on limited suppliers, enhance supply chain resilience, and ensure uninterrupted support for its agricultural sector. As reported by knnindia.co.in, at the same time, the move would open new trade opportunities, helping bridge the economic gap between the two global partners.
