India has made a formal request to China to relax its export restrictions on urea amid concerns that ongoing conflicts in the Middle East could disrupt global fertilizer supplies. As the top urea producer, China currently employs a quota system to manage its exports, but it has not yet determined the quotas for 2026. The urgency of this request is underscored by the significant rise in urea prices, which surged by 21% in just the first week of the escalating conflict, reaching a peak not seen in over three years. This increase poses serious challenges to agricultural production in India, which relies heavily on urea for its farming needs.

The background of this situation is tied to the ongoing disruptions in the liquefied natural gas (LNG) market caused by the Middle East conflict, which in turn impacts fertilizer production capabilities. Several Indian fertilizer manufacturers have been compelled to halt operations due to these supply chain issues. While the Ministry of Chemicals and Fertilizers has assured that the availability of key fertilizers, including urea and diammonium phosphate, is currently adequate, the reliance on urea production from China presents a significant vulnerability in India's agricultural infrastructure.

With urea being the most widely used nitrogen fertilizer essential for food production, the price fluctuation has raised alarms about food security in India. The government’s proactive approach in seeking negotiations with China aims not only to stabilise the fertilizer market but also to ensure that sufficient supplies are available to meet domestic agricultural demands effectively, particularly as the country gears up for the upcoming farming season.