China to ship at least 1.2 million tons of urea to India after easing export controls

China is preparing to send at least 1.2 million tons of urea to India, a massive shipment that accounts for roughly two-thirds of the total volume contracted under India’s latest import tender. The cargo must leave Chinese ports by September 24, 2026. The deal follows Beijing’s decision to raise its urea export quota to approximately 5 to 5.5 million tons this year, a significant loosening after a period of strict controls. Why this shipment matters beyond the two countries India is the world’s largest urea importer, and its nitrogen fertilizer consumption exceeds that of the United States and Brazil combined. That demand is fueled in large part by government subsidies that keep fertilizer prices at farm gates well below global levels. Indian farmers pay a fraction of what the open market charges, which means the government absorbs the difference, and the country’s appetite for imports stays enormous. China’s gradual reopening of the export valve The easing of urea export restrictions has been a gradual process that began around mid-2025, following a period of tightened controls implemented amid broader geopolitical tensions. Since the quota opened up, China has already committed t...