West Asia crisis disrupts urea output, raises costs

GLOBAL FERTILISER PRICES and freight have increased due to the West Asia crisis, which has hit domestic urea output, a senior official said on Monday.

- SANDIP DAS

“Global prices and freight costs have increased, while the domestic production of urea has been impacted,” Aparna S Sharma, additional secretary, Department of Fertilisers, said in a briefing.

Fertiliser imports from the Gulf region account for the country's consumption of 20%-30% of urea, 30% of diammonium phosphate (DAP), and 50% of liquefied natural gas (LNG), a key feed-stock in urea production.

LNG imports from Qatar and the United Arab Emirates (UAE) are shipped through the Strait of Hormuz, which has been blocked because of the conflict.