Prolonged Tensions To Hit Import of Fertilizers, Metals, Building Materials and Diamonds

Chennai: The impact of Middle East tensions has extended beyond the supply of crude oil and natural gas to fertilizers, diamonds, industrial raw materials, metals and construction materials. Closure of fertilizer plants in the Middle East may affect the Kharif sowing in India.

In 2025, India imported $98.7bn worth of goods from West Asia, making the region a crucial supplier for energy, fertilisers and industrial raw materials.

The region includes the six Gulf Cooperation Council countries — Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE — along with other regional economies such as Iran, Iraq, Israel, Jordan, Lebanon, Syria and Yemen.

“If disruptions to shipping through the Strait of Hormuz continue beyond a week, the effects could quickly spread from energy markets to fertiliser supplies, manufacturing inputs, construction materials and export industries such as diamonds,” said Ajay Srivastava, founder, GTRI.

Several fertilizer plants in the Middle East have stopped operations after the shipping routes were closed, making availability of plant nutrients such as nitrogen and phosphate fertilisers, as well as sulphur scarce. Production of urea in Qatar, Iran and Saudi Arabia also has been affected, as per agency reports.

India recently concluded a deal to buy 1.3 million tons of urea, with some of that supply likely to be sourced from the Middle East. According to analysts, there is a risk of these supplies not reaching India on time. India buys more than 40 per cent of its urea and phosphatic fertilisers from the Middle East.

In 2025, India imported $3.7 billion worth of fertilisers from West Asia. This included $2.2 billion of mixed fertilisers (NPK) and $1.5 billion of nitrogen fertilisers. The region also supplied $420 million worth of sulphur.

Further, around $6.8 billion worth of rough diamonds came from West Asia, accounting for 40.6 per cent of imports. Any disruption in raw diamond shipments could slow production and affect employment in the jewellery sector.

India imported $1.2bn worth of polyethylene polymers from West Asia, accounting for 35.6 per cent of imports of this plastic feedstock. Supply shortages could disrupt packaging industries and consumer goods manufacturing.

West Asia also supplies $129 million worth of gypsum and $483 million worth limestone and shortages can push up cement prices and delay infrastructure projects.

Among metals, $190 million worth of direct reduced iron (DRI) is used for steelmaking and $869 million worth of copper wire is used in power transmission, electrical equipment and renewable energy infrastructure.