West Asia tensions push input costs up but kharif agrochemical supply currently stable, says UPL COO

Geopolitical tensions in West Asia, including disruptions around the Strait of Hormuz, are increasing costs for major agricultural inputs, industry executives say.

Global fertilizer prices have surged by about 50–80%, while shipping rates, marine insurance and energy prices have also risen, adding to input cost pressures for farmers and supply chains.

Toshan Tamhane, chief operating officer at UPL Group, said these developments could affect both pricing and availability of agricultural inputs if the tensions persist over time.

Despite the price pressures, Tamhane noted that the immediate availability of agrochemicals for the upcoming kharif season is stable because most required products have already been manufactured and are held in inventory or with distributors.

He highlighted the strategic importance of the Strait of Hormuz as a corridor for energy and fertilizer feedstocks. Qatar supplies a significant share of global LNG used in fertilizer production, and most of its exports transit through the strait, linking regional disruptions to fertilizer feedstock flows.

The report indicates that pre-built inventories have limited any immediate agrochemical supply disruptions for the kharif season, but prolonged instability around Hormuz could change both costs and availability for the agricultural sector.