After rare earth magnets, China halts specialty fertiliser shipments to India: Report

China has stopped shipments of specialty fertilisers to India for the past two months, reported The Economic Times citing industry officials, in an apparent escalation of informal export curbs that could impact agricultural yields.

India sources nearly 80% of its specialty fertilisers from China, which are used to enhance yields of high-value crops such as fruits and vegetables.

China has withheld clearances for Indian-bound consignments without imposing an official ban, according to executives at major Indian importers.

“China has been restricting suppliers of specialty fertilisers to India for the last four to five years. However, this time, it's a complete halt,” ET quoted Rajib Chakraborty, president of the Soluble Fertilizer Industry Association, as saying.

Specialty fertilisers, including water-soluble, micronutrient, nano and bio-stimulant variants, are non-subsidised products that improve soil health and nutrient efficiency.

India typically imports 150,000–160,000 tonnes of such fertilisers in the June–December window.

India’s specialty fertiliser sector is projected to grow rapidly, with the micronutrient segment expected to top $1 billion by 2029, according to the Fertilizer Association of India (FAI).

However, local production remains limited due to a lack of technology and low historical demand.

Major Indian firms like Deepak Fertilizers and Nagarjuna Fertilizers are active in this space, and rising demand is now prompting interest in setting up domestic manufacturing.

India is already facing Chinese export controls on rare earth magnets, critical components in electric vehicles (EVs) and electronics.

China imposed new licensing requirements in April for seven rare earth elements, disrupting shipments of neodymium-iron-boron (NdFeB) magnets vital for Permanent Magnet Synchronous Motors used in EVs and hybrids.

Crisil Ratings warned that a prolonged supply disruption could impact India’s automotive sector, which is planning several EV launches by year-end. Most automakers currently hold 4–6 weeks of inventory.

India’s government is considering a subsidy scheme to boost local production of rare earth magnets, with a decision expected in the next 15–20 days.

Officials said one Hyderabad-based company has pledged to deliver 500 tonnes by year-end, though full-scale production may take two years.

India is also exploring alternative rare earth sources in Japan and Vietnam as part of its effort to reduce dependence on Chinese supplies.