India's big worry on fertilizer prices as Putin threatens a shortage

Putin is set to play havoc with the Indian budget the govt's as well as households with first oil and now fertilizer as the prices of key imports for India are sky rocketing. The Russian President has threatened the western forces that the Kremlin will restrict fertilizer export which will exacerbate soaring food prices globally. This may spell to be a disaster the Indian govt and the small and marginal farmer, here is how-:

• India is the world’s biggest importer of fertilizer material, mainly urea and di-ammonium phosphate
• India imports about a third of its fertilizer needs
• As per govt data, imports from Russia of four types of fertiliser have doubled in these three years
• Rock Phosphate is the key raw material NPK fertilisers and India is 90% dependent on imports, 60% of it comes from Russia
• Global fertilizer prices have surged roughly 200% over the past year due to the rise coal and gas prices
• Prior to the Russia war itself there was an acute shortage of fertilizers which reportedly led to a rampant black market with prices soaring 150% above retail rate.

Modi govt has seen fertilzer subsidy double over the last 4 years with payout of Rs 70,000 cr in 2018 to Rs 1.4 lakh crore estimated in this fiscal year.