‘It all depends on the crop’: Gulf crisis hits South Asia farmers

Key Points:

• The US-Israel war on Iran and the closure of the Strait of Hormuz have disrupted global supplies of oil and liquefied natural gas (LNG), essential for manufacturing nitrogen-based fertilisers, leading to increased costs and supply uncertainties for South Asian farmers.
• South Asian countries including India, Pakistan, Bangladesh, and Nepal heavily depend on fertilisers imported via the Strait of Hormuz, making their agriculture sectors vulnerable to disruptions that could reduce crop yields and increase food prices.
• Despite government reassurances about fertiliser supply stability and efforts to boost domestic production, farmers across the region are already facing higher fertiliser prices and shortages, forcing them to reduce usage and risk lower harvests.
• Rising fertiliser costs threaten farmers’ livelihoods and household finances, with many forced to prioritize expenses such as education and weddings, highlighting the broader social impact of the geopolitical crisis on rural communities.
• Governments face the challenge of balancing fertiliser subsidies to keep prices affordable while managing the fiscal strain caused by global price shocks, as food security concerns mount amid potential production declines.