The Red Sea crisis: Imported fertilisers paint mixed price picture

Annual fertiliser subsidy would remain within the FY24 Budget estimate of Rs 1.75 trillion and could have been lower had the crisis not erupted

The Red Sea crisis, precipitated by Houthi rebels of Yemen attacking ships, has pushed up freight charges for imported fertilisers, with trade sources saying the time taken to deliver the cargo has gone up.

Largely, di-ammonia phosphate (DAP) and muriate of potash (MOP), imported from Jordan and Israel, have been affected.

Also, freight charges of raw material from Russia and its adjoining countries like Belarus have gone up due to the alternative and longer route ships are taking due to the crisis.

Trade sources said freight rates had gone up from $20 per tonne to $30-40 per tonne.

Union Fertiliser Minister Mansukh Mandaviya recently