Washington, May 14: This week, a heated hearing in the US Senate brought attention to India’s significant fertilizer purchases and subsidy-based agricultural policies. American senators and farmers warned that global supply disruptions and rising input costs are putting American agriculture in a deeper crisis, asserting that India is influencing global fertilizer prices.
During the Senate Agriculture Committee hearing, witnesses noted that geopolitical tensions, export bans, and supply disruptions related to the Strait of Hormuz have led to increased volatility in the global fertilizer market.
Several senators and industry leaders pointed directly to India’s growing role in global fertilizer trade, identifying the country as one of the largest buyers influencing international prices.
Corey Rosenbush, President and CEO of the Fertilizer Institute, informed lawmakers that India, the world’s second-largest fertilizer consumer after China, recently issued a significant tender for 2.5 million metric tons of urea at nearly $1,000 per metric ton.
Rosenbush stated, “India has recently tendered another 2.5 million metric tons of urea at approximately $1,000 per metric ton.”
He explained that the Indian government provides substantial subsidies on fertilizer purchases to shield farmers from rising global prices, a policy that is affecting demand and supply patterns worldwide.
He told the committee, “In India, which is the second-largest fertilizer consumer after China, the federal government purchases fertilizer and then heavily subsidizes it to keep prices low for farmers.”
This hearing occurred as American farmers expressed concerns over rising fertilizer prices, shrinking margins, and increasing bankruptcies across rural America. Lawmakers from both parties labeled the situation as a national security issue linked to food supply and geopolitical instability.
Committee Chairman Senator John Boozman described the crisis as a generational event for American agriculture.
South Dakota farmer Trent Kubik informed senators that fertilizer prices have nearly doubled in recent years, forcing farmers to reduce fertilizer use and alter farming decisions.
Kubik said, “In 2025, we did not apply any phosphate on our farm because it was not economically viable for us.”
Kentucky farmer Eddie Melton noted that many producers are operating with very little or no working capital while facing sharp increases in fertilizer prices.
Melton remarked, “Since February, we have seen a 33% increase in anhydrous prices, a 55% increase in urea prices, and a 25% rise in liquid nitrogen prices.”
Witnesses also pointed to disruptions around the Strait of Hormuz, one of the world’s most critical shipping routes for energy and fertilizer ingredients. Rosenbush informed lawmakers that nearly 34% of globally traded urea and half of the world’s sulfur exports pass through this area.
During the hearing, concerns were raised about China’s export restrictions on fertilizer products, with witnesses warning that reduced global supply is increasing price pressures on farmers worldwide.
Several senators supported bipartisan legislation aimed at improving transparency in the fertilizer market and enhancing domestic US production capacity.
India is one of the world’s largest fertilizer importers and heavily relies on the global supply chain for urea, potash, and phosphate.
Any prolonged disruption in Gulf shipping routes or increases in international fertilizer prices could escalate the subsidy burden on New Delhi and impact input costs for farming ahead of critical crop seasons.