Fertilizer crisis hits farmers as Iran war disrupts supply

Key Points:

• The Iran war and Tehran’s near shutdown of the Strait of Hormuz have caused a global fertilizer shortage and rising gas prices, severely impacting farmers, especially in developing countries reliant on Gulf imports.
• Key fertilizer nutrients like nitrogen (including urea) and phosphate are in short supply due to shipping disruptions and soaring liquefied natural gas prices, threatening crop yields during critical planting seasons worldwide.
• Countries such as Ethiopia and India face acute fertilizer shortages, with India heavily subsidizing urea to support smallholder farmers, though production remains below capacity due to natural gas constraints.
• The shortage is expected to reduce crop yields and increase food prices globally, with farmers potentially switching to less fertilizer-intensive crops or applying less fertilizer, exacerbating food security risks.
• Long-term solutions include boosting domestic fertilizer production, reducing reliance on imports, and government subsidies, but these come with challenges such as increased gas dependency and soil health concerns.