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As energy infra comes under attack in Russia & West Asia, India has a new fertiliser problem
Developing
In Short: The crisis has been exacerbated by targeted strikes on Russian oil refineries and energy infrastructure in West Asia, including attacks on Saudi Aramco, QatarEnergy, and Abu Dhabi National Oil Company.
India's fertilizer industry is facing a new challenge as the price of sulphur, a critical component in the production of key fertilizers, has doubled since the beginning of the year, reaching $1,050-1,100 per tonne. This surge is linked to the ongoing conflicts in West Asia and the Russia-Ukraine war, which have disrupted global energy infrastructure.
Sulphur is essential for breaking down rock phosphate into a water-soluble form that plants can absorb, making it indispensable for the production of di-ammonium phosphate (DAP), single super phosphate (SSP), and other complex fertilizers. An industry official explained, 'Without sulphur and sulphuric acid, there can be no DAP, SSP or popular complex fertilisers such as 20:20:0:13, 10:26:26 and 12:32:16.
The crisis has been exacerbated by targeted strikes on Russian oil refineries and energy infrastructure in West Asia, including attacks on Saudi Aramco, QatarEnergy, and Abu Dhabi National Oil Company. These disruptions have led to a significant increase in the cost of sulphur, which is primarily sourced as a byproduct of petroleum oil refining (56%) and natural gas processing (34%).
India's fertiliser sector alone accounts for roughly 60% of the 70 million tonnes (mt) annual global sulphur consumption, with the country's yearly sulphur consumption standing at 3.8-3.9 mt, of which 2-2.1 mt is used by the fertiliser industry. Despite securing supplies of rock phosphate through joint ventures and strategic tie-ups in Jordan, Senegal, and Morocco, Indian companies like Iffco, Coromandel, and Paradeep Phosphates are struggling to maintain production without sufficient sulphur.
While India has managed to stave off a potential food crisis by importing enough urea and liquefied natural gas to enable domestic production of high-nitrogen fertiliser, the sulphur shortage poses a new threat to agricultural productivity and food security.
What this adds
The disruption in energy infrastructure has significantly impacted the availability and cost of sulphur, a critical component in fertilizer production.
Background
West Asia is the westernmost region of Asia. As defined by most academics, UN bodies and other institutions, the subregion consists of Anatolia, the Arabian Peninsula, Iran, Mesopotamia, the Armenian highlands, the Levant, the Sinai Peninsula and the South Caucasus.
What's still developing
- Most of the world’s sulphur gets converted into sulphuric acid that is, in turn, a core chemical for manufacturing all fertilisers containing phosphorous (P).