China plays hardball! After choking rare earth magnets supply, China blocks important agriculture-related shipments to India; continues exports to others

Time of India

26-06-2025

Chinese officials are avoiding inspection of India-bound consignments. (AI image)
China has stopped exports of specialty fertilisers to India over the past two months, whilst continuing to supply other countries, according to senior executives at major importing firms.
For India, these fertilisers are crucial for enhancing yields of fruits, vegetables and other profitable crops.
The Chinese authorities require inspection of factory shipments.
Sources familiar with the situation told ET that Chinese officials are avoiding inspection of India-bound consignments, effectively blocking exports through procedural means rather than an explicit prohibition.
The technological capability to manufacture speciality fertilisers is currently absent in India, as historically low volumes have made local manufacturing facilities financially unfeasible.
This development occurs amid growing diplomatic strains between the nations over the last five years, marked by border conflicts and China's alignment with Pakistan.
China blocks fertilizer shipments to India
Approximately 80% of India's requirements for these chemical inputs come from Chinese sources. "China has been restricting suppliers of specialty fertilisers to India for the last four to five years. However, this time it is a complete halt," Rajib Chakraborty, president, Soluble Fertilizer Industry Association (SFIA) was quoted as saying.
China has implemented restrictions on exporting crucial materials like rare earth magnets, seemingly in response to imposed tariffs and other limitations.
For countries sharing a border with India, government authorisation is required for investments, a measure specifically targeting its northern neighbour.
China Blocks Speciality Fertilizers Exports To India
Industry data suggests that India's typical imports of specialty fertilisers amount to 150,000-160,000 tonnes during the June-December period.
Non-subsidised soil nutrients, known as specialty fertilisers, include various categories including water-soluble fertilisers (WSFs), liquid fertilisers for foliar and fertigation, controlled release fertilisers (CRFs), slow-release fertilisers (SRFs), micronutrient fertilisers, fortified fertilisers, customised fertilisers, nano fertilisers, bio-stimulants, organic and other value-added and innovative fertilisers.
Speciality fertilisers provide enhanced crop production, maintain soil quality and ensure efficient nutrient utilisation, whilst reducing negative effects on the environment when compared with conventional fertilisers.
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According to the Fertilizer Association of India, the Indian micronutrient fertiliser market is projected to surpass $1 billion by 2029, growing at a CAGR of 9.2%.
The FAI also forecasts that Indian biostimulants will reach $734 million by 2029, with a CAGR of 15.6%, whilst the organic fertiliser sector is expected to expand to $1.13 billion by 2032, showing a CAGR of 7%.
Leading fertiliser organisations including Deepak Fertilizers, Paradeep Fertilizers and Nagarjuna Fertilizer Company are active participants in this market segment.
"Specialty fertilisers are now replacing primary fertilisers, thereby increasing their consumption volume," Chakraborty said, adding that a large number of companies are now interested in setting up manufacturing units.
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India has the option to look at additional sources for importing these agricultural inputs.
"While alternative destinations such as Jordan and Europe can be explored, the challenge is to land these chemicals in time," said a senior official of a multinational fertiliser company.
Whilst standard fertilisers like urea, diammonium phosphate (DAP) and muriate of potash (MOP) serve general agricultural needs, speciality fertilisers provide precise nutrient delivery systems tailored to particular requirements.
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