Washington, May 14: This week, a heated hearing in the U.S. Senate highlighted India’s significant fertilizer purchases and subsidy-based agricultural policies. American senators and farmers warned that global supply disruptions and rising input costs are putting additional strain on U.S. agriculture. They noted that India is influencing global fertilizer prices.
During the Senate Agriculture Committee hearing, witnesses pointed out that geopolitical tensions, export restrictions, and supply chain disruptions linked to the Strait of Hormuz have led to increased volatility in the global fertilizer market.
Several senators and industry leaders directly referenced India’s growing role in the global fertilizer trade, identifying the country as one of the largest buyers influencing international prices.
Corey Rosenbush, President and CEO of the Fertilizer Institute, informed lawmakers that India, the world’s second-largest fertilizer consumer after China, recently issued a significant tender for 2.5 million metric tons of urea at nearly $1,000 per metric ton.
Rosenbush stated, “India has recently tendered for another 2.5 million metric tons of urea at approximately $1,000 per metric ton.”
He explained that the Indian government provides substantial subsidies for fertilizer purchases to protect farmers from rising global prices, a policy that impacts demand and supply patterns worldwide.
He told the committee, “In India, which is the second-largest fertilizer consumer after China, the federal government purchases fertilizer; then they provide heavy subsidies to keep prices low for their farmers.”
This hearing occurred as U.S. farmers expressed concerns over soaring fertilizer prices, shrinking margins, and increasing bankruptcies across rural America. Lawmakers from both parties identified this situation as a national security issue linked to food supply and geopolitical instability.
Senator John Boozman, the committee chairman, described this crisis as a generational challenge for American agriculture.
South Dakota farmer Trent Kubik informed senators that fertilizer prices have nearly doubled in recent years, forcing farmers to reduce fertilizer use and alter their farming decisions.
Kubik remarked, “In 2025, we did not apply any phosphate on our fields because it was not economically viable for us.”
Kentucky farmer Eddie Melton noted that many producers are operating with minimal or no working capital while facing sharp increases in fertilizer prices.
Melton stated, “Since February, we’ve seen a 33% increase in anhydrous prices, a 55% increase in urea prices, and a 25% increase in liquid nitrogen prices.”
Witnesses also pointed to disruptions around the Strait of Hormuz, one of the world’s most critical shipping routes for energy and fertilizer ingredients. Rosenbush informed lawmakers that approximately 34% of globally traded urea and half of the world’s sulfur exports pass through this region.
During the hearing, concerns were raised about China’s export restrictions on fertilizer products, with witnesses warning that reduced global supply is increasing price pressures on farmers worldwide.
Several senators supported bipartisan legislation aimed at improving transparency in the fertilizer market and boosting domestic U.S. production capacity.
India is one of the largest fertilizer importers globally and heavily relies on the global supply chain for urea, potash, and phosphate.
Any prolonged disruption in Gulf shipping routes or increases in international fertilizer prices could escalate the subsidy burden on New Delhi and impact input costs for farming ahead of critical crop seasons.
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