Indonesia will supply 250,000 tonnes of urea to Australia to mitigate global shortages

Australia has secured an agreement to import approximately 250,000 tonnes of agricultural-grade urea from Indonesia, as authorities move to stabilize fertilizer supplies disrupted by geopolitical tensions in the Middle East. The deal between Incitec Pivot Fertilisers and PT Pupuk Indonesia is expected to cover roughly 20% of the country’s remaining fertilizer needs for the current season, with deliveries scheduled between May and December.

The agreement comes as supplies from the Persian Gulf—traditionally accounting for around 60% of Australia’s urea imports—remain constrained due to ongoing regional conflict. Incitec Pivot said the additional volumes, secured at prevailing market prices, would play a key role in supporting domestic agricultural output and regional food security. The arrangement was facilitated with support from both the Australian and Indonesian governments, underscoring efforts to diversify sourcing and maintain supply continuity.

Alongside the import deal, the Australian government has introduced temporary changes to biosecurity procedures to accelerate fertilizer imports from non-traditional suppliers such as Nigeria and Oman. Measures include simplified offshore certification, streamlined inspection processes, and new sampling requirements for higher-risk imports. Officials said the reforms were developed in consultation with industry and are intended to reduce delays while maintaining strict biosecurity standards.

The supply push follows recent diplomatic efforts by Prime Minister Anthony Albanese and Foreign Minister Penny Wong to strengthen ties with Southeast Asian producers, including Brunei and Malaysia. While no immediate increase in imports was agreed during the Brunei visit, both sides signaled willingness to expand cooperation on fertilizer and energy supplies. Despite these efforts, authorities acknowledged that supply constraints may persist later in the year, with additional measures under consideration to ensure adequate availability for farmers.

Source: AgroPages