How India has successfully countered China’s fertilizer export blocks

By Admin

22 Jul, 2025

India’s agricultural backbone nearly faced a crisis when China unexpectedly blocked fertilizer exports particularly Diammonium Phosphate (DAP) during a crucial planting period. But in a demonstration of swift diplomacy and strategic foresight, India managed to neutralize the threat effectively, securing alternate supply routes and strengthening its global partnerships.

China’s Attempt to Choke India’s Fertilizer Supply

In May–June 2025, China abruptly halted inspections of fertilizer shipments bound for India, effectively blocking exports. This move was viewed by Indian authorities as a calculated attempt to exert geopolitical pressure. It coincided with India’s Kharif season, a critical period for sowing, and created immediate shortages of DAP, the second most widely used fertiliser in India after urea.

Reports suggested that Chinese suppliers had received unofficial directives to cease India-bound deliveries. The move not only disrupted trade but came at a sensitive time during India’s “Operation Sindoor” against Pakistan, raising further strategic concerns. The episode was a glaring example of Beijing’s willingness to weaponize trade and manipulate supply chains for political leverage.

India’s Diplomatic and Strategic Response

Despite the timing and scale of the disruption, India responded with remarkable agility. The Indian government treated the situation as a national priority, acting swiftly to ensure the crisis remained limited to a single season.

Key to India’s response was its proactive diplomacy. Anticipating long-term issues with China, Indian companies and policymakers began seeking alternative suppliers months in advance. This foresight played a crucial role in stabilizing the fertilizer supply chain.

New Global Partnerships: Saudi Arabia and Morocco Step Up

India secured a major victory by entering into long-term supply agreements with trusted partners. Saudi Arabia agreed to supply 10 lakh metric tonnes of DAP under a broader agreement totalling 31 lakh metric tonnes. Simultaneously, Morocco committed to exporting 5 lakh metric tonnes to India.

While this still left a gap of around 7 lakh metric tonnes, India tapped into its domestic reserves and opened negotiations with other countries, including Russia where fertilisers remain outside the sanctions regime.

Building a Diverse Supply Chain

To prevent future dependency on a single supplier like China, India is now reaching out to new partners such as Egypt, Nigeria, Togo, Mauritania, and Tunisia. These efforts are aimed at building a resilient and diversified global fertilizer network.

Interestingly, since 2023, China has been slow in renewing fertilizer agreements with India, signalling its intent to reduce cooperation. Indian firms, sensing this shift, had already begun scaling up imports from countries like Saudi Arabia even though Chinese fertilizer rates were often cheaper.

Looking Ahead: A Stronger, More Self-Reliant India

Government forecasts suggest that India will have adequate fertilizer stocks for the upcoming Rabi season. By securing supplies from Saudi Arabia, Morocco, and potentially Russia, India has successfully navigated one of the most complex challenges in its fertilizer import history.

This episode underscores India’s growing diplomatic maturity and resilience. It also serves as a wake-up call to reduce critical sector dependencies on any single nation, particularly in strategic areas like agriculture.

India’s effective handling of the crisis not only prevented disruption to its food production but also sent a clear message: when challenged, India has both the capability and the global partnerships to defend its national interests.