India urea tender: IPL seeks 1.7 million tonnes, pulls key shipment deadline forward to December 1

Indian Potash Limited (IPL) has launched a new India urea tender to import 1.7 million tonnes of fertilizer-grade urea, and it has already shortened the delivery window. The state-linked importer floated the tender on September 23 on behalf of the Department of Fertilizers, and an amendment issued the same day moved the latest permissible sailing date from December 15 to December 1, according to Rural Voice.

Of the total, 1 million tonnes is earmarked for West Coast ports and 700,000 tonnes for the East Coast. Suppliers can offer prilled or granular urea with at least 46% nitrogen, but a single vessel cannot carry both forms. Offers are due electronically by 11:30 a.m. on October 7, with price bids opened at 12:30 p.m. the same day. Offers must stay valid until October 15.

IPL will accept both FOB and CFR terms and evaluate each coast separately, which means it can split volumes among several suppliers. Producers are exempt from bid bonds, while accredited suppliers must post $3 per tonne and other bidders $10 per tonne. Performance guarantees range from 1% to 10% of contract value, and the tender states that late shipments can trigger liquidated damages or cancellation.

The tender lands as India’s landed urea costs have eased sharply from their spring peak, as Fertilizer Daily reported when India’s urea import costs fell 57%. Supply is also shaped by China, where a 3.3 million tonne export quota and FOB price floors set the tone for fourth-quarter trade. The October 7 price bids will be the next benchmark for Asian urea values.

Source: Rural Voice