Russian fertilizer giant pushes India for duty-free imports

Phosagro, Russia’s foremost fertilizer producer, has called on India to drop its 5% import duty on Russian fertilizers to secure consistent supplies in the future.

The appeal follows Indian Prime Minister Narendra Modi’s recent visit to Moscow, during which he discussed fertilizer imports. As the world’s second-largest fertilizer importer, India sourced a quarter of its imported fertilizer from Russia in 2023. Phosagro reported a six-fold increase in its exports to India in 2022, a surge driven by Western sanctions on Russia.

Phosagro emphasized its willingness to increase fertilizer supplies to India. However, the company pointed out that existing trade barriers, such as the import duty, elevate costs for Indian customers, limiting Phosagro’s capacity. The company suggested establishing a free trade zone between India and the Eurasian Economic Union, which includes Russia and four other former Soviet states, as a potential solution.

In a joint statement, Russia and India set an ambitious bilateral trade target of $100 billion by 2030, up from the current $65 billion. Both nations agreed to sustain cooperation on long-term fertilizer supply contracts, ensuring that Indian agriculture continues to benefit from reliable and stable fertilizer imports.