US Senators Discuss India’s Massive Fertilizer Imports And Rising Costs

WASHINGTON, DC -India’s large-scale fertilizer imports and subsidy-driven farm policies were repeatedly referenced during a US Senate Agriculture Committee hearing as American lawmakers and farmers warned that rising input costs and global supply disruptions were deepening the farm crisis in the United States.

During the hearing, witnesses said global fertilizer markets had become increasingly volatile due to geopolitical tensions, export restrictions and supply bottlenecks linked to the Strait of Hormuz.

Several lawmakers and industry representatives identified India as one of the world’s largest fertilizer buyers influencing global prices and supply patterns.

Corey Rosenbusch, President and CEO of The Fertilizer Institute, told lawmakers that India, the world’s second-largest fertilizer consumer after China, had recently issued a major urea tender for 2.5 million metric tons at nearly $1,000 per metric ton.

“India recently did another urea tender for 2.5 million metric tons of urea at nearly $1,000 per metric ton,” Rosenbusch said. He told the committee that the Indian government heavily subsidizes fertilizer purchases to protect farmers from rising global prices, a policy that affects international demand and supply trends.

“In India, the world’s second largest consumer of fertilizer behind China, their federal government procures their fertilizer; they then heavily subsidize it to keep prices low for their farmers,” he said. The hearing took place as American farmers raised concerns over rising fertilizer costs, shrinking profit margins and increasing financial stress across rural communities.

Senate Agriculture Committee Chairman Senator John Boozman described the situation as “a generational event” for American agriculture.

South Dakota farmer Trent Kubik told lawmakers that fertilizer costs had nearly doubled in recent years, forcing some farmers to reduce usage and alter planting decisions.

“In 2025, we did not apply any phosphate on our farm because it just did not make economic sense for us,” Kubik said.

Kentucky farmer Eddie Melton said producers were facing major increases in fertilizer prices while operating with limited working capital.

“Since February, we have seen a 33 per cent rise in anhydrous prices, a 55 per cent rise in urea prices, and a 25 per cent increase in liquid nitrogen,” Melton said.

Witnesses also highlighted concerns surrounding the Strait of Hormuz, one of the world’s most important shipping routes for energy and fertilizer supplies.

Rosenbusch told lawmakers that nearly 34 per cent of globally traded urea and half of the world’s Sulphur exports move through the region.

The hearing also focused on China’s export restrictions on fertilizer products, with witnesses warning that tightening global supplies were increasing price pressures worldwide.

India remains one of the world’s largest fertilizer importers and depends heavily on global supply chains for urea, potash and phosphates.

Analysts say any prolonged disruption in Gulf shipping routes or sharp increases in international fertilizer prices could raise India’s subsidy burden and affect agricultural costs ahead of key crop seasons. (IANS)