China Eases Urea Export Curbs, Boosting Supplies to India

As of August 21, 2025, China has taken steps to ease its earlier restrictions on fertilizer exports, particularly urea, with India being the main recipient. The Chinese government has allocated an additional 7 million tonnes of urea for export, a significant increase from the previous allocations.

This development comes as India and China have commenced discussions on a trade package covering the supply of critical rare earth magnets, fertilizers, and other essential inputs. The talks aim to address the heightening tensions between India and the US over tariffs, as well as the growing demand from Indian industries to expedite imports of essential materials from China.

The increased urea exports to India are expected to provide much-needed relief to Indian farmers during the ongoing kharif season, the main planting season when crops like rice, pulses, oilseeds, and maize are sown. The demand for urea in India has surged due to a good monsoon rainfall and an expansion in crop acreage. Farmers have sown about 39.86 million hectares under rice as of August 15, up from 36.29 million hectares a year ago, and the acreage under maize has also increased to 9.28 million hectares from 8.29 million hectares during the same period.

The easing of export restrictions on urea and other critical supplies from China is a significant development that is likely to benefit Indian agriculture and help address the country's fertilizer needs during this crucial planting season.