U.S. Lawmakers Cite India’s Fertilizer Imports During Farm Cost Hearing

WASHINGTON — India’s large fertilizer purchases and subsidy-driven farm policies were cited repeatedly during a U.S. Senate hearing this week as lawmakers and farmers warned that global supply disruptions and soaring input costs are pushing American agriculture deeper into crisis.

At a Senate Agriculture Committee hearing, witnesses said global fertilizer markets have become increasingly volatile because of geopolitical tensions, export restrictions and supply bottlenecks linked to the Strait of Hormuz.

Several senators and industry leaders pointed to India’s growing role in the global fertilizer trade, describing the country as one of the major buyers shaping international prices.

Corey Rosenbusch, president and CEO of The Fertilizer Institute, told lawmakers that India, the world’s second-largest fertilizer consumer after China, recently issued a major urea tender for 2.5 million metric tons at nearly $1,000 per metric ton.

“India recently did another urea tender for 2.5 million metric tons of urea at nearly $1,000 per metric ton,” Rosenbusch said.

He said India’s government heavily subsidizes fertilizer purchases to shield farmers from rising global prices, a policy that is influencing worldwide demand and supply patterns.

“In India, the world’s second largest consumer of fertiliser behind China, their federal government procures their fertiliser; they then heavily subsidise it to keep prices low for their farmers,” Rosenbusch told the committee.

The hearing came as U.S. farmers complained of rising fertilizer costs, shrinking margins and growing bankruptcies across rural America. Lawmakers from both parties described the situation as a national security issue tied to food supply and geopolitical instability.

Senate Agriculture Committee Chairman John Boozman called the crisis “a generational event” for American agriculture.

South Dakota farmer Trent Kubik told senators fertilizer costs have nearly doubled in recent years, forcing farmers to reduce fertilizer use and change planting decisions.

“In 2025, we did not apply any phosphate on our farm because it just did not make economic sense for us,” Kubik said.

Kentucky farmer Eddie Melton said many producers are operating with little or no working capital while facing steep increases in fertilizer prices.

“Since February, we have seen a 33 per cent rise in anhydrous prices, a 55 per cent rise in urea prices, and a 25 per cent increase in liquid nitrogen,” Melton said.

Witnesses also pointed to disruptions around the Strait of Hormuz, one of the world’s most important shipping routes for energy and fertilizer ingredients. Rosenbusch told lawmakers that nearly 34% of globally traded urea and half of the world’s sulfur exports move through the region.

The hearing also highlighted concerns over China’s export restrictions on fertilizer products, with witnesses warning that tighter global supplies are worsening price pressures for farmers worldwide.

Several senators backed bipartisan legislation aimed at improving fertilizer market transparency and increasing domestic U.S. production capacity.

India is among the world’s largest fertilizer importers and remains highly dependent on global supply chains for urea, potash and phosphates.

Any prolonged disruption in Gulf shipping routes or spike in international fertilizer prices could increase New Delhi’s subsidy burden and affect agricultural input costs ahead of key crop seasons. (Source: IANS)