{"id":570434,"date":"2026-03-28T17:56:12","date_gmt":"2026-03-28T17:56:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/570434\/"},"modified":"2026-03-28T17:56:12","modified_gmt":"2026-03-28T17:56:12","slug":"food-prices-set-to-rise-amid-global-fertiliser-shortage","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/570434\/","title":{"rendered":"Food prices set to rise amid global fertiliser shortage"},"content":{"rendered":"<p>Annirudha Ghosal and Allan Olingo<\/p>\n<p data-testid=\"article-datetime\" class=\"sc-5cbbddda-5 hxoHkT\">March 28, 2026 \u2014 7:30pm<\/p>\n<p>Save<\/p>\n<p class=\"sc-d1b14060-4 JmUoF\">You have reached your maximum number of saved items.<\/p>\n<p>Remove items from your <a href=\"https:\/\/www.smh.com.au\/goodfood\/saved\" class=\"sc-3f16ee48-12 sc-d1b14060-2 jyLmZI iQLtAb\" rel=\"nofollow noopener\" target=\"_blank\">saved list<\/a> to add more.<\/p>\n<p class=\"sc-369d9219-1 bOiPYX\">Save this article for later<\/p>\n<p class=\"sc-369d9219-2 bufJxo\">Add articles to your saved list and come back to them anytime.<\/p>\n<p>Got it<\/p>\n<p>AAA<\/p>\n<p>Hanoi, Vietnam: Farmers around the world are feeling the squeeze from the war in Iran. Fuel prices have shot up, and fertiliser supplies are waning due to Tehran\u2019s near shutdown of the Strait of Hormuz in retaliation for US and Israeli bombing.<\/p>\n<p>The fertiliser shortage is putting the livelihood of farmers in developing countries \u2013 already troubled by rising temperatures and erratic weather systems \u2013 further at risk, and could lead to people everywhere paying more for food.<\/p>\n<p><img decoding=\"async\" alt=\"India is trying to reduce its dependence of imported fertiliser.\" loading=\"lazy\" src=\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/03\/fe07bc89ad73f3553535298e3888d39ecd2e21d3.jpeg\"  class=\"sc-d34e428-1 ioInpc\"\/>India is trying to reduce its dependence of imported fertiliser.Bloomberg<\/p>\n<p>The poorest farmers in the northern hemisphere rely on fertiliser imports from the Gulf, and the shortage comes just as planting season begins, said Carl Skau, deputy executive director of the World Food Program.<\/p>\n<p>\u201cIn the worst case, this means lower yields and crop failures next season. In the best case, higher input costs will be included in food prices next year.\u201d<\/p>\n<p>Baldev Singh, a 55-year-old rice farmer in Punjab, India, says smallholders \u2013 the bulk of the country\u2019s farmers \u2013 may not survive if the government cannot subsidise fertilisers when demand peaks in June.<\/p>\n<p>Related Article<a href=\"https:\/\/www.smh.com.au\/world\/middle-east\/us-iran-war-live-updates-us-expects-to-end-operation-in-weeks-not-months-says-rubio-g7-call-for-attacks-on-civilians-to-stop-israel-attacks-iranian-nuclear-facilities-20260327-p5zjg1.html\" tabindex=\"-1\" class=\"sc-cba76dee-0 hdiTqm\" rel=\"nofollow noopener\" target=\"_blank\"><img decoding=\"async\" alt=\"US Secretary of State Marco Rubio speaks to reporters after a G7 meeting of foreign ministers.\" loading=\"lazy\" src=\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/03\/1774720570_75_7a449c26a6231ad552e7cfad8a822621daad8bdf.jpeg\"  class=\"sc-d34e428-1 ioInpc\"\/><\/a><\/p>\n<p>\u201cRight now, we are waiting and hoping,\u201d he said.<\/p>\n<p>War halts supplies of key nutrients<\/p>\n<p>Iran is seriously limiting shipments through the Strait of Hormuz, a narrow passage that usually handles about a fifth of the world\u2019s oil shipments and nearly a third of global fertiliser trade.<\/p>\n<p>On Friday, Iran\u2019s ambassador to the United Nations in Geneva, Ali Bahreini, said Tehran had accepted a request from the UN to let humanitarian aid and agricultural shipments move through the critical waterway, even as it endured strikes on its nuclear facilities.<\/p>\n<p>The aid plan would be the first breakthrough at the shipping choke point after a month of war. While markets and governments have largely focused on blocked supplies of oil and natural gas, the restriction of fertiliser threatens farming and food security worldwide.<\/p>\n<p>\u2018The planting season is now. The fertiliser isn\u2019t there.\u2019<\/p>\n<p>Raj Patel,food systems economist<\/p>\n<p>Nitrogen and phosphate \u2013 two major fertiliser nutrients \u2014 are under immediate threat from the blockade.<\/p>\n<p>Supplies of nitrogen, including urea, the most widely traded fertiliser that helps plants grow and boosts yields, are the hardest hit because of shipping delays and the soaring price of liquefied natural gas, an essential ingredient.<\/p>\n<p>The conflict has restricted about 30 per cent of the global urea trade, said Chris Lawson of CRU Group, a London-based commodities consultancy.<\/p>\n<p>Some countries are already facing critical shortages, according to Raj Patel, a food systems economist at the University of Texas. For example, Ethiopia gets more than 90 per cent of its nitrogen fertiliser from the Persian Gulf through Djibouti, a supply route that was strained even before the war began in February.<\/p>\n<p>Related Article<a href=\"https:\/\/www.smh.com.au\/world\/middle-east\/trump-needs-troops-to-seize-the-strait-of-hormuz-these-are-his-options-20260327-p5zjev.html\" tabindex=\"-1\" class=\"sc-cba76dee-0 hdiTqm\" rel=\"nofollow noopener\" target=\"_blank\"><img decoding=\"async\" alt=\"Washington is diverting forces, including marines, from the Pacific to the Middle East.\" loading=\"lazy\" src=\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/03\/6b26d74d0d6fe57cad13739502425f24e4dabf13.jpeg\"  class=\"sc-d34e428-1 ioInpc\"\/><\/a><\/p>\n<p>\u201cThe planting season is now,\u201d Patel said. \u201cThe fertiliser isn\u2019t there.\u201d<\/p>\n<p>Phosphate supplies, which support root development, are also under pressure. Saudi Arabia produces about a fifth of the world\u2019s phosphate fertiliser, and the region exports more than 40 per cent of the world\u2019s sulphur, a key ingredient and byproduct of oil and gas refining, Lawson said.<\/p>\n<p>Even after the war ends, producers in the Gulf would need clear security guarantees before resuming shipments through the strait, and insurance costs would almost certainly rise, said Owen Gooch, an analyst with London-based Argus Consulting Services.<\/p>\n<p>In India, the government has prioritised urea supplies for domestic use and provides fertiliser manufacturers with about 70 per cent of their natural gas needs. Some plants are still operating below capacity, resulting in lower output.<\/p>\n<p>\u201cThe food system is fragile, and it depends on stable fertiliser supply chains to ensure farmers can produce the food the world relies on,\u201d said Hanna Opsahl-Ben Ammar of Yara International, one of the world\u2019s largest fertiliser companies.<\/p>\n<p>Shortages hit at a critical time<\/p>\n<p>Fertilisers are generally applied just before or at planting, so crops miss key early growth stages, and yields can fall when deliveries are delayed, even if supplies improve later.<\/p>\n<p>The impact is already being felt in the United States and Europe, where the main planting season is underway, and it is expected to hit the first planting season in much of Asia in the coming months.<\/p>\n<p><img decoding=\"async\" alt=\"A Thai farmer distributes fertiliser across his paddy field using a fishing net.\" loading=\"lazy\" src=\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/03\/0aad1ae5314b8ae51d5a2b77f095ff29b8af35a2.jpeg\"  class=\"sc-d34e428-1 ldCIuB\"\/>A Thai farmer distributes fertiliser across his paddy field using a fishing net.Bloomberg<\/p>\n<p>\u201cOur crops out in the field need nitrogen now \u2013 the sooner, the better \u2013 so they can get off to a good start, helping them establish themselves and build up reserves for the harvest later this summer,\u201d said Dirk Peters, an agricultural engineer who runs a farm outside Berlin.<\/p>\n<p>Fertiliser prices are below the peaks seen after Russia\u2019s invasion of Ukraine, but grain prices were higher then, helping farmers absorb the costs, said Joseph Glauber of the International Food Policy Research Institute.<\/p>\n<p>Grain prices are lower now, meaning margins are tighter and farmers may have to switch to less fertiliser-intensive crops \u2013 such as soybeans in the US \u2013 or apply less fertiliser, reducing yields. Lower yields can lead to higher consumer prices.<\/p>\n<p>Other nations likely won\u2019t make up the shortfall. China, the world\u2019s largest producer of nitrogen and phosphate fertilisers, is prioritising domestic supply, and urea shipments probably won\u2019t resume until May, Lawson said.<\/p>\n<p>Factories in Russia, another major producer, are already running near full capacity, he said.<\/p>\n<p>Developing nations are vulnerable<\/p>\n<p>The disruptions are already being felt across Africa, where many farmers rely on fertiliser imported from the Middle East and Russia.<\/p>\n<p>Early heavy rains in East Africa have left farmers with about a week of dry weather to prepare fields and apply fertiliser, said Stephen Muchiri, a Kenyan maize farmer and chief executive of the Eastern African Farmers Federation, which represents 25 million smallholders.<\/p>\n<p><img decoding=\"async\" alt=\"Workers unload fertiliser in Colombo, Sri Lanka. There are concerns that the shutdown Strait of Hormuz could trigger global shortages. \" loading=\"lazy\" src=\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/03\/930f7075ba691bc5ea2b1ed3a004629b3376cced.jpeg\"  class=\"sc-d34e428-1 ldCIuB\"\/>Workers unload fertiliser in Colombo, Sri Lanka. There are concerns that the shutdown Strait of Hormuz could trigger global shortages. Bloomberg<\/p>\n<p>Fertiliser shortages and price hikes hit farmers hard, forcing them to use less and leading to reduced yields. Even short delays can reduce maize yields by about 4 per cent in a season, Patel said, citing research from Zambia.<\/p>\n<p>Governments can intervene by applying subsidies, promoting domestic production and controlling exports.<\/p>\n<p>Related Article<a href=\"https:\/\/www.theage.com.au\/national\/victoria\/from-lebanon-to-the-petrol-pump-making-sense-of-the-middle-east-omnishambles-20260326-p5zj1i.html\" tabindex=\"-1\" class=\"sc-cba76dee-0 hdiTqm\" rel=\"nofollow noopener\" target=\"_blank\"><img decoding=\"async\" alt=\"Brother and sister Jamie Roche and April Poutee find a novel way to extract the last drop of unleaded fuel from the hose.\" loading=\"lazy\" src=\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/03\/7d8494fd781b7ae2e6cf05d54951bea52d57aa8c.jpeg\"  class=\"sc-d34e428-1 ioInpc\"\/><\/a><\/p>\n<p>India already subsidises fertiliser to ease the financial strain on farmers, but those subsidies leave less money for long-term farming investments. It has budgeted $US12.7 billion ($18.4 billion) this year for urea subsidies alone, according to the US-based Institute for Energy Economics and Financial Analysis.<\/p>\n<p>Efforts to produce domestic urea have increased India\u2019s dependence on imported gas, and excessive urea use has harmed local soil, said Purva Jain of IEEFA, which supports the use of organic fertilisers.<\/p>\n<p>Less reliance on imported fertilisers could protect farmers and consumers from energy price swings and climate shocks, said Oliver Oliveros, executive coordinator of the Agroecology Coalition.<\/p>\n<p>\u201cThis could be a turning point,\u201d he said.<\/p>\n<p>AP<\/p>\n<p>Get a note directly from our foreign correspondents on what\u2019s making headlines around the world. <a class=\"inline-link\" href=\"https:\/\/www.smh.com.au\/newsletter-signup?newsletter=trump-biden-2020&amp;utm_source=EditorialArticle&amp;utm_medium=ArticleText&amp;utm_campaign=Newsletters\" rel=\"nofollow noopener\" target=\"_blank\">Sign up for our weekly What in the World newsletter<\/a>.<\/p>\n<p>Save<\/p>\n<p class=\"sc-d1b14060-4 JmUoF\">You have reached your maximum number of saved items.<\/p>\n<p>Remove items from your <a href=\"https:\/\/www.smh.com.au\/goodfood\/saved\" class=\"sc-3f16ee48-12 sc-d1b14060-2 jyLmZI iQLtAb\" rel=\"nofollow noopener\" target=\"_blank\">saved list<\/a> to add more.<\/p>\n<p>From our partners<\/p>\n","protected":false},"excerpt":{"rendered":"Annirudha Ghosal and Allan Olingo March 28, 2026 \u2014 7:30pm Save You have reached your maximum number of&hellip;\n","protected":false},"author":2,"featured_media":570435,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[64,63,99,164],"class_list":["post-570434","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-au","tag-australia","tag-business","tag-economy"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/570434","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=570434"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/570434\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/570435"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=570434"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=570434"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=570434"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}