China has taken a significant step in addressing the global fertilizer shortage by issuing export quotas for urea, a key crop nutrient. This move comes in response to supply disruptions caused by the ongoing conflict in Iran, which has affected the flow of fertilizers through the Strait of Hormuz.

China, one of the world’s largest exporters of fertilizers, had previously halted exports to protect domestic farmers from rising prices. The issuance of export quotas indicates that Chinese authorities are confident in their domestic supply, allowing them to release some urea for international markets.

Two Chinese urea producers confirmed receiving export quotas, although they did not provide specific details. An Indian importer also noted that the Chinese government had issued a notification permitting urea exports. However, the exact volume of exports remains unverified, with industry sources suggesting around 1.5 million metric tons may be allocated.

India, which relies heavily on imports for its fertilizer needs, particularly from the Middle East, is expected to benefit from the resumption of Chinese exports. The disruption of gas supplies due to the U.S.-Israeli conflict with Iran has threatened fertilizer production, prompting India to seek alternative sources.

A senior official from an Indian fertilizer company expressed a preference for Chinese supplies, citing their reliability and the avoidance of the Strait of Hormuz, which has been a bottleneck due to the conflict.

In 2025, China exported 4.9 million tons of urea, slightly below its historical average. The current move to resume exports is likely to be welcomed by countries facing fertilizer shortages, as it may help stabilize global prices.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.