Yara Digs Deep: Fertiliser Imports Set to Bloom 25 Percent

Yara International’s Indian unit is gearing up for a significant expansion in specialty fertiliser imports, projecting a 25 percent increase this year. The move comes amid tightening export restrictions from China and rising domestic demand driven by a shift toward high-value horticulture crops.  

Key highlights  

- Yara India has already imported between 100,000 and 120,000 tonnes of specialty fertilisers from January to September and is on track to reach 135,000 to 140,000 tonnes by year-end  
- The surge is fueled by Indian farmers increasingly cultivating fruits and vegetables, which offer higher profitability compared to traditional crops  
- China’s impending export curbs, including stricter inspections and delayed consignments, have prompted Yara to diversify its sourcing strategy  
- Currently, 70 percent of Yara’s specialty fertiliser imports come from its Norwegian plants, particularly calcium nitrate, while the remaining 30 percent is sourced from Middle Eastern suppliers for products like sulphate of potash and potassium nitrates  
- This strategic shift has extended supply chains and increased working capital requirements, but Yara has managed to maintain stable prices for Indian farmers over the past six months  
- The company is leveraging its resilience built during past global disruptions, including COVID-19 and the Russia-Ukraine conflict, to navigate current challenges  
- Yara is also eyeing growth in the non-subsidised specialty fertiliser segment, with plans to expand into micronutrient manufacturing under India’s Make in India initiative  

Sources: Outlook Business, Rediff Moneynews, Devdiscourse