Washington: India’s fertiliser subsidy policies and massive imports came under scrutiny during a heated US Senate Agriculture Committee hearing, where lawmakers and farmers warned that soaring input costs and global supply disruptions were worsening the crisis in American agriculture.
Witnesses said geopolitical tensions, export restrictions and supply bottlenecks around the Strait of Hormuz had made fertiliser markets highly volatile. Industry leaders repeatedly pointed to India’s growing influence on global prices as one of the world’s largest fertiliser buyers.
Corey Rosenbusch, President and CEO of The Fertilizer Institute, told senators that India had recently floated a urea tender for 2.5 million metric tons at nearly $1,000 per metric ton. He said New Delhi’s heavy fertiliser subsidies helped shield Indian farmers from rising prices but also shaped global demand and supply trends.
“In India, the world’s second-largest consumer of fertiliser behind China, their federal government procures their fertiliser and heavily subsidises it to keep prices low for farmers,” Rosenbusch said.
US farmers described mounting financial stress from rising fertiliser costs and shrinking margins. Committee Chairman John Boozman called the situation “a generational event” for American agriculture.
South Dakota farmer Trent Kubik said fertiliser costs had nearly doubled, forcing farmers to cut usage and alter planting plans. Kentucky farmer Eddie Melton told lawmakers that urea prices had risen 55 per cent since February, while anhydrous prices were up 33 per cent.
Witnesses also warned that disruptions in the Strait of Hormuz threatened global supply chains, with Rosenbusch noting that about one-third of globally traded urea and half of sulphur exports passed through the region.
Lawmakers also raised concerns over China’s fertiliser export restrictions and backed bipartisan efforts to improve market transparency and boost domestic US fertiliser production.
India remains heavily dependent on imports of urea, potash and phosphates, leaving it vulnerable to global price spikes and shipping disruptions ahead of key crop seasons. (IANS)
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