Rahul Mirchandani, Managing Director of Aries Agro, said the fertiliser sector has been the most affected industry due to the Iran-U.S. war [1].
This disruption threatens agricultural stability in India and beyond. Because fertilisers are critical inputs for crop production, price spikes and supply shortages can lead to decreased yields, and heightened food insecurity for developing nations [2].
Mirchandani cited a combination of factors currently pressuring the industry. He said demand has been dampened by a delayed monsoon and the impact of a strong U.S. dollar, which complicates pricing and procurement for Indian importers [1]. These geopolitical tensions in West Asia have disrupted global supply chains, increasing the cost of essential inputs [2].
Financial pressures are mounting for producers and end-users alike. Reports indicate that fertiliser prices have risen by approximately 50% since the previous year due to the conflict [3]. One farmer reported spending an additional £25,000 on fertiliser as a direct result of the war in Iran [3].
While industry leaders in India describe the sector as the most impacted, other global analysts characterize the situation as a severe disruption that endangers food security in the near term [2]. The intersection of war-driven supply shocks and climatic instability creates a volatile environment for the agricultural supply chain [1, 2].
Mirchandani said, "Fertiliser sector has been the most affected sector due to the West Asia crisis" [1].
“Fertiliser sector has been the most affected sector due to the West Asia crisis.”
The convergence of geopolitical conflict in West Asia and adverse weather patterns in India creates a 'perfect storm' for agricultural volatility. When global supply chains for fertilisers break down, the resulting price inflation is passed down to farmers, potentially reducing crop acreage or increasing food prices for consumers. This highlights the vulnerability of India's food security to external shocks in the energy and chemical markets.
