West Asia conflict likely to raise pesticide costs by 25%; Chouhan takes stock of agricultural situation

The West Asia conflict is likely to increase the input cost of pesticides by 20 to 25 per cent, leading to supply disruptions and risk of counterfeits, even as the war holds major ramifications for the Indian agriculture sector.

The war, which broke out on February 28, has raised concerns over global fertiliser supply chains.

The government on Friday said adequate supply of urea and DAP fertiliser has been ensured for farmers across the country, with imports of the two key nutrients surging 63 per cent during April-January of the current fiscal.

However, the bulk of the import surge predates the conflict.

According to the Ministry of Fertilisers, the total imports of urea and Di-Ammonium Phosphate (DAP) rose to 14.94 million tonne in April-January of 2025-26 from 9.17 million tonne in the year-ago period.

Urea imports rose 83.3 per cent to 8.93 million tonne during the period against 4.87 million tonne a year earlier. DAP imports surged to 9.03 million tonne from 4.30 million tonne in the corresponding period. Urea and DAP are the two fertilizers consumed the most in India.

CropLife India, representing leading research-driven crop protection companies, said the Iran war is likely to further escalate the prices of pesticides, which are heavily exported.

The West Asia conflict has hit oil refineries in Saudi Arabia, Qatar, and Kuwait, endangering 20% of global oil flows. In fact, these events have disrupted India’s energy systems and are hurting the country's agriculture sector in multiple ways.

India’s dependence on crude oil imports in 2023-24 was a staggering 87.7 per cent. This makes it one of the most energy-dependent major economies in the world.

"The Centre has slashed fertiliser subsidy to the tune of Rs 99,000 crore in the last five years. There is a non-availability of adequate amount of urea in the market, forcing the farmers to go to black markets. The Iran war has further aggravated the situation. Most of the small and marginal farmers of our country are dependent on exports to the Gulf, especially for perishable products, dry fruits, horticulture, fisheries and poultry. They have been hit the hardest by this war," P Krishna Prasad from the All India Kisan Sabha (AIKS) told The Tribune.

The Indian government had recently guaranteed fertiliser plants at least 70 percent of their average natural gas consumption, designating them 'Priority Sector-2' to secure urea production amid the West Asia supply disruptions.

Farm union leaders, however, said it won't be enough if the war continues further.

"India has hardly made any strides in research and development of fertlisers and pesticides, thus solidifying its dependence on imports. In fact, prices of plastics have gone up, which will have an impact on the packaging of fertlisers and pesticides. Aluminum prices have also gone up. All these have increased the cost of doing agriculture," BKU-A national spokesperson Dharmendra Malik said.

Agriculture policy analyst Devinder Sharma, however, argued that the country is in a better position to tide over the situation.

Addressing a high-level review of the overall agricultural situation in the country, Union minister Shivraj Chouhan said the government’s priority is not limited to increasing production, but extends equally to ensuring scientific assessment of crop damage, accurate settlement of insurance claims, and timely assistance to farmers.