Dragon fire extinguished! How India has successfully countered China's fertilizer export blocks; seen as ‘supply chain weaponisation…'
India seems to have found an effective solution to China's move of blocking fertilizer exports to India. In May-June, China abruptly escalated tensions regarding fertiliser exports by stopping inspections of shipments destined for India.
India believes that Chinese suppliers received unofficial instructions to halt India-bound deliveries, according to an ET report. This development triggered serious concerns in New Delhi, prompting swift action to contain the situation to a single season and prevent domestic disruptions.
How Did China Look to Choke India's Fertilizer Supply?
China's export restrictions on fertilisers to India represents one of the most severe instances of supply chain manipulation and weaponzation by Beijing, according to an ET analysis.
The timing of China's action was particularly challenging as it coincided with the Kharif season, causing significant DAP (Diammonium Phosphate) shortages across Indian states.
The situation became more complex as it emerged during India's "Operation Sindoor" against Pakistan, especially noteworthy given India's military authorities' concerns about China's support to Pakistan.
The incident highlights the critical necessity to assess India's supply chain dependencies on China across various industries.
Also Read |
China plays hardball! After choking rare earth magnets supply, China blocks important agriculture-related shipments to India; continues exports to others
How Has India Countered China's Fertilizer Move?
India has successfully navigated through a challenging fertiliser crisis with China through significant diplomatic endeavours.
As preparations for the Rabi season distribution commence by month-end, it's worth noting that India's previous DAP imports from China were around 22 lakh metric tonnes.
Whilst managing issues related to terrorism, trade and Trump, India has engaged in extensive diplomatic initiatives over several months to secure adequate DAP supplies before the Rabi season distribution, typically beginning in July-end.
Saudi Arabia and Morocco have emerged as crucial partners in helping India counter China's supply chain pressures.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Your 2 & 3 BHK dream home in the heart of city Pune
Kohinoor Riverdale
Read More
Undo
Following diplomatic negotiations, India secured agreements with Saudi Arabia for supplying 10 lakh metric tonnes of DAP through a long-term arrangement totalling 31 lakh metric tonnes.
Additionally, Morocco agreed to provide 5 lakh metric tonnes, leaving a deficit of 7 lakh metric tonnes.
The shortfall may be partially addressed through domestic reserves, whilst discussions continue with Russia to enhance exports, considering fertiliser remains outside sanctions.
Also Read |
Russia oil squeeze: Trump's 100% tariff threat - should India panic?
Government projections indicate sufficient stocks for the upcoming Rabi season. India continues to pursue additional arrangements, approaching various nations including Egypt, Nigeria, Togo, Mauritania and Tunisia to establish a more diverse supply network.
Since 2023, Beijing has reduced its pace in renewing and establishing new fertiliser agreements with India. This led to increased procurement from Saudi Arabia as Indian firms anticipated supply constraints, despite Chinese rates being more economical.
India's immediate response appears successful, having secured alternative sources through Saudi Arabia, Morocco and potentially Russia for Diammonium Phosphate (DAP), which ranks as India's second most utilised fertiliser after urea.
Stay informed with the latest
business
news, updates on
bank holidays
and
public holidays
.
AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
29 minutes ago
- Mint
PM Modi's Maldives visit from today: Full itinerary, key agendas here
Prime Minister Narendra Modi departed for the Maldives from the UK on Thursday, after concluding the first leg of his two-nation visit. The prime minister is on a two-day state visit to the island nation from today at the invitation of Maldivian President Mohamed Muizzu. he inaModi will arrive at Velana International Airport of the Maldives at around 9.40 AM IST. During his visit, the Prime Minister will be the guest of honour at the 60th Independence Day celebrations of the Maldives on 26 July. "The prime minister's state visit also happens to be the first state visit of a head of government that President Muizzu is hosting in his presidency since he assumed the office in November 2023," Foreign Secretary Vikram Misri said earlier this week. The Maldives is a very close partner in our neighbourhood, a very important partner in India's Neighbourhood First policy, and as part of the MAHASAGAR vision of India, which is Mutual and Holistic Advancement for Security and Growth Across Regions, he added. Misri also mentioned the India-Maldives joint vision for a 'Comprehensive Economic and Maritime Security Partnership' that was finalised last year. "This joint vision, in a sense, has become the guiding framework for our ties," he said. The external affairs ministry said Modi will also meet with President Muizzu and inaugurate several India-assisted development projects in the island nation. G Balasubramanian, the High Commissioner of India to the Maldives, told news agencies that various MOUs will be signed between India and the Maldives during PM Modi's trip. The prime minister's visit to the Maldives is seen as important as it marks a significant reset of bilateral ties that had come under severe strain after Muizzu, known for his pro-China leanings, became president in November 2023. Misri attributed the turnaround in the relationship to India working hard on the ties with the island nation. Earlier during his visit to the UK from July 23 to July 24, Prime Minister Modi met with his UK counterpart, Keir Starmer, at Chequers, the country residence of the Prime Minister. The two PMs also welcomed the signing of the landmark India-UK Comprehensive Economic and Trade Agreement (CETA), which raised the Comprehensive Strategic Partnership to a new level. Following his meeting with Starmer, the Prime Minister met with King Charles III at Sandringham Estate in England and discussed bilateral issues and progress between the two nations. He also presented a sapling to the King to be planted in Sandringham Estate in autumn as part of the 'Ek Ped Maa Ke Naam' campaign, the MEA stated. -Arrives at Velana International Airport at around 9.40 AM IST. -Reaches Republic Square for the official welcome ceremony at around 3 PM IST. -Meeting with Mohamed Muizzu, President of The Maldives after the welcome -Delegation-level talks follow. -Exchange of MoUs and virtual inauguration of projects at around 5 PM IST -Press Statements will be issued after the inauguration. The Maldives is a very close partner in our neighbourhood, a very important partner in India's Neighbourhood First policy. -PM Modi will also attend a banquet hosted by Mohamed Muizzu, President of Maldives later in the day.
Mint
29 minutes ago
- Mint
US Treasuries Slip for Second Day as New Jobless Claims Fall
(Bloomberg) -- Treasuries fell for a second day as fresh data showing resilience in the US labor market gave traders pause about the Federal Reserve's path on interest-rate cuts Yields settled about three basis points higher across most tenors, led by shorter-dated debt, which is more sensitive to changes in monetary policy. And interest-rate swaps showed traders slightly pared bets on Fed rate cuts. They are now pricing in 42 basis points of reductions by the end of the year, with the first full cut coming by the October meeting. 'The bottom line is that the Fed can't credibly cut rates with an unemployment rate of 4.1%,' said George Catrambone, head of fixed income, DWS Americas. 'There is a glass ceiling on how high yields can push out of their current range with a Fed that's frozen in place.' Data released Thursday showed initial claims for unemployment benefits fell to 217,000 in the week ended July 19, the lowest since mid-April. Another pressure point for traders is a dispute between President Donald Trump and Federal Reserve Chair Jerome Powell over construction works, which the president has criticized for cost overruns. Trump on Thursday toured the central bank's headquarters, where a $2.5 billion renovation is ongoing. 'We would be helped if interest rates would come down,' Trump told reporters, standing next to Powell. 'But we're going to see how the board rules on that soon. I'd love to see them come down a lot.' Traders have ruled out a rate cut at the Fed's meeting next week. 'The mounting risk of the Fed being seen as acting more on a political than a fundamental level is a sizable threat to long-end rates over the medium term,' Rabobank strategists wrote in a note. What Bloomberg Strategists say... 'This period of quiet in rates may prove transitory given the risks on the horizon. Traders appear content to wait for Fed Day, GDP and payrolls next week to deliver a directional cue, but the setup argues for a potential repricing. Since 2023, each period of consolidation in 2s10s has been followed by a robust steepening of the curve' - Brendan Fagan, Macro Strategist, Markets Live For the full analysis, click here. With Fed speakers in a blackout period ahead of that meeting, bond investors were largely focused on the weekly jobless claims report. The six weeks of declines is the longest such stretch since 2022. 'The labor market deterioration has slowed or stopped, with the caveat the labor supply, immigration, negative data revisions are making reading the labor market data tricky,' said Ed Al-Hussainy, rates strategist at Columbia Threadneedle Investment. Market expectations of rate cuts starting from late September, 'may be off the table if unemployment is unchanged next week,' he said. European government bonds also fell after the European Central Bank tempered expectations of a possible interest rate cut in September. Investors were already turning broadly more risk-on amid deals between the US and its trading partners. The European Union and the US are progressing toward an agreement that would set a 15% tariff for most imports, according to diplomats briefed on the negotiations. Earlier on Thursday, a $21 billion auction of 10-year Treasury Inflation-Protected Securities drew solid demand. --With assistance from Naomi Tajitsu. (Updates prices in second paragraph, adds Bloomberg strategist quote and details on Trump tour.) More stories like this are available on
Mint
29 minutes ago
- Mint
Buy or sell: Vaishali Parekh recommends three stocks to buy today — 25 July 2025
Buy or sell stocks: The benchmark indices of the Indian stock market began the session on a weak footing and remained under pressure throughout the weekly expiry, as lacklustre Q1 results 2025 from IT majors triggered a sharp sell-off in the sector, weighing on overall sentiment. Caution also prevailed before next week's U.S. Federal Reserve policy decision, likely to steer global market direction. The Sensex dropped 542.47 points, or 0.66%, to close at 82,184.17, while the Nifty fell 157.80 points, or 0.63%, settling at 25,062.10. Sector-wise, PSU Banks, Healthcare, and Pharma outperformed in positive territory, bucking the broader downtrend. In contrast, heavy selling was seen across most other sectors, with the IT index sliding over 2%, leading the losses. Broader markets also came under selling pressure, with the Nifty Midcap index down 0.58% and the Small-cap index shedding 1.09%, indicating a weak undertone across segments. Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, believes the Indian stock market sentiment is sideways to positive. The Nifty 50 index is sustaining above the 50-DEMA support of 24,900, while the key benchmark index faces resistance at 25,250. Speaking on the outlook of the Nifty 50 today, Vaishali Parekh said, "The Nifty 50 index once again found resistance near the hurdle of 25,250 zone and witnessed profit booking to slip towards the 25,000 zone to indicate a tight rangebound movement between 25,000 and 25,250 level for quite some time, with overall bias maintained positive. As mentioned earlier, we continue to maintain our stance, would need a decisive breach above the 25,250 to 25,300 zone to continue with the positive movement further ahead and expect the next targets of 25,500 and 25,700 levels in the coming days, provided the crucial support zone of 24,900 level is sustained as of now." "The Bank Nifty index continues to move within a tight range, having the tough resistance barrier near the 57,300 zone, which needs to be breached decisively and expect further upward movement in the coming days. On the downside, the 50-DEMA zone at the 56,000 level shall be an important and crucial support which needs to be sustained to maintain the overall bias and sentiment intact," said Parekh. Parekh said that the immediate support for the Nifty 50 index is at 24,900, while the resistance is at 25,300. The Bank Nifty would have a daily range of 56,500 to 57,600. Regarding stocks to buy today, Vaishali Parekh recommended three buy-or-sell stocks: Bandhan Bank, REC, and Hubtown. 1] Bandhan Bank: Buy at ₹ 184, Target ₹ 190, Stop Loss ₹ 180; 2] REC: Buy at ₹ 405.50, Target ₹ 412, Stop Loss ₹ 398; and 3] Hubtown: Buy at ₹ 305, Target ₹ 325, Stop Loss ₹ 295. Disclaimer: The views and recommendations made above are those of individual analysts or brokerage companies and not of Mint. We advise investors to check with certified experts before making any investment decisions.
