India is expected to benefit from China’s decision to ease restrictions on urea exports. According to people familiar with the matter, China has allocated an additional 7 million tonnes of urea for export, and “most of this urea will come to India”. The move brings relief to Indian farmers during the kharif season, as a previous allocation of urea is expected to provide 2-3 million tonnes to India.
The demand for urea in India has surged due to a good monsoon rainfall and a significant increase in the area sown for crops like rice and maize. However, as of August 1, stocks of key fertilizers like urea and diammonium phosphate were lower compared to the same period last year. The article notes that India and China have also begun discussions on a broader trade package that would include critical rare earth magnets and other essentials.