Understanding the Implications of West Asia Conflict on India’s Fertilizer Sector and Economy

UNDERSTANDING THE IMPLICATIONS OF WEST ASIA CONFLICT ON INDIA’S FERTILIZER SECTOR AND ECONOMY

by IFPRI, South Asia | May 19, 2026

The International Food Policy Research Institute (IFPRI), in collaboration with the Indian Council of Agricultural Research (ICAR), convened a panel discussion titled “Conflict in West Asia: Understanding Implications for India’s Fertilizer Sector and Economy” to examine how ongoing geopolitical tensions could affect fertilizer availability, food production, farmer incomes, and broader economic stability in India.

The dialogue brought together experts from research, policy, and development institutions, to discuss both immediate risks and long-term structural challenges facing India’s fertilizer sector. Discussions explored the implications of disruptions to global fertilizer and energy supply chains, India’s dependence on imported LNG and fertilizer raw materials, and the broader linkages between agriculture, energy, trade, and food systems.

The event raised several important policy questions, including the resilience of global fertilizer supply chains amid prolonged conflict, the need to balance protection and subsidy mechanisms, ways to improve fertilizer-use efficiency, and the preparedness of institutions to respond to future shocks.

During the discussion, the IFPRI team presented insights on how the Computable General Equilibrium (CGE) modelling approach can be used to assess the implications of geopolitical disruptions on India’s fertilizer sector and the wider economy.

Participants highlighted the need to improve fertilizer-use efficiency, reduce excessive dependence on urea, strengthen smart subsidy systems, and promote alternative solutions such as green ammonia and other sustainable fertilizers. Discussions also emphasized the importance of coordinated and evidence-based action across sectors to build resilient and sustainable farming systems capable of responding to future economic and climate-related challenges.

The dialogue underscored the growing importance of integrating research, policy, and institutional preparedness in addressing emerging risks to India’s food and fertilizer systems.

Learn more about the event here.