India Reorientates Energy and Fertilizer Sourcing Amid West Asia Tensions

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As the maritime blockade of the strategic Strait of Hormuz approaches 120 days, India has significantly shifted its energy and agricultural supply lines. Sourcing patterns for Liquefied Petroleum Gas (LPG) and Liquefied Natural Gas (LNG) have heavily pivoted toward the United States, which supplied an unprecedented 1.5 million tonnes (mt) of LNG during the March–May 2026 quarter compared to just 0.1 mt from Qatar. Simultaneously, the recent US-Iran peace deal negotiated in Switzerland has offered immediate relief to the agricultural sector. Four stranded cargo vessels carrying roughly 180,000 tonnes of critical fertilizers and raw materials (including 92,250 tonnes of urea, 55,000 tonnes of DAP, and 32,251 tonnes of sulphur) successfully cleared the Strait. These shipments are heading to the ports of Krishnapatnam, Kakinada, Paradeep, and Mundra to fortify domestic stockpiles ahead of the critical Kharif cropping season.

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