India Turns to Egypt, Algeria and Nigeria for 1.1 Million Tonnes of Urea

India is rapidly diversifying its fertiliser supply chain by increasing urea imports from Egypt, Algeria and Nigeria, as disruptions around the Strait of Hormuz put pressure on traditional Gulf supply routes.

India imported about 2.5 million tonnes of urea during the first quarter of the current financial year. Egypt supplied 609,000 tonnes, Algeria 245,000 tonnes, and Nigeria 244,000 tonnes. Together, the three African countries provided nearly 1.1 million tonnes, representing a major increase from the same period last year, when India imported no urea from them.

The shift has been driven largely by geopolitical tensions and shipping disruptions affecting the Persian Gulf. India has traditionally obtained more than 40% of its urea and phosphatic fertiliser imports from Gulf suppliers, leaving its agricultural sector vulnerable to disruptions around the Strait of Hormuz.

African producers are therefore gaining a stronger position in India's fertiliser market. Major producers include MOPCO and Abu Qir in Egypt, Sorfert and AOA in Algeria, and Dangote Fertiliser and Indorama Eleme in Nigeria.

During the 2025–26 financial year, Nigeria supplied 447,090 tonnes of urea to India, while Algeria exported 217,059 tonnes and Egypt supplied 194,830 tonnes.

Despite having 33 urea plants with a combined production capacity of 26.9 million tonnes, India still imports around 20% of its annual fertiliser requirements.

At the same time, India's fertiliser subsidy burden is rising sharply. The government has proposed increasing subsidies to ₹3.54 trillion ($37.1 billion), compared with the initially budgeted ₹1.77 trillion ($18.6 billion), amid higher global fertiliser prices and geopolitical uncertainty.

India has also reduced its fertiliser demand forecast for the current kharif season from 39.05 million tonnes to 38.39 million tonnes, while projected urea demand has been cut by about 400,000 tonnes to 19 million tonnes.

Despite the lower demand forecast, Egypt, Algeria and Nigeria are emerging as increasingly important suppliers as India seeks to reduce its dependence on fertiliser shipments passing through the Middle East.

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