FITCH WARNS ASIA FACES HIGHER FOOD INFLATION RISK

Fitch Ratings has warned that emerging markets in Asia could face rising cost pressures across agribusiness and food supply chains if a prolonged US-Iran conflict disrupts global fertiliser supplies during the planting season.

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The agency said reduced availability and higher fertiliser prices would increase production costs for farmers, discourage application rates, and potentially weaken crop yields, leading to higher food prices later in 2026.

The Gulf region, a key global fertiliser producer due to its natural gas supply, has been affected by higher energy prices and shipping disruptions linked to the conflict.

Continued uncertainty, along with export restrictions from key suppliers such as China, is expected to sustain input-cost pressures across Asia.