India's Fertiliser Industry and the Sulphur Crisis

India has managed to avoid a potential food crisis by importing sufficient urea and liquefied natural gas to support domestic production of high-nitrogen fertilisers. However, the soaring prices of sulphur are impacting the availability of key fertilisers like di-ammonium phosphate (DAP) and single super phosphate (SSP).

Rising Sulphur Prices

• Prices for sulphur imported into India have doubled to $1,050-1,100 per tonne.
• The increase is attributed to geopolitical tensions, including drone and missile attacks on energy infrastructures by Ukraine and Iran.

Sulphur's Role in Fertiliser Production

• Only 10% of sulphur is directly mined, with the rest being a byproduct of oil refining and gas processing.
• Approximately 60% of the global sulphur consumption is by the fertiliser sector.
• Sulphur is essential for producing sulphuric acid, which is crucial for manufacturing phosphorous-based fertilisers.

Impact of Geopolitical Tensions

• Russia and China have imposed bans on sulphur exports to protect their fertiliser production.
• The Russia-Ukraine conflict significantly affected sulphur import prices, which have risen to $1,150 per tonne recently.

Influence of Electric Vehicle (EV) Batteries

• Increased demand for sulphuric acid in nickel processing for EV batteries has contributed to the price surge.
• Nickel demand for sulphuric acid rose from 3.5 mt in 2021 to 16 mt in 2025, largely from Indonesia.

Indian Fertiliser Production

• India imports a significant portion of its sulphur requirements, despite sourcing some domestically.
• Companies like Iffco and Coromandel International integrate imported sulphur with rock phosphate to produce various fertilisers.

India's domestic phosphoric acid manufacturing capacity is 2.2 mt, which only meets half of its requirement for phosphatic fertiliser production. The industry is currently relying on geopolitical resolutions and decreased fertiliser demand due to El Niño for relief in sulphur prices.