Global food security could come under pressure due to rising fertilizer prices, shipping disruptions and higher transportation costs, Union Finance Minister Nirmala Sitharaman has warned.
Speaking about the growing challenges to global supply chains, Sitharaman said that food security is closely linked to the availability of fertilizers. Any disruption in fertilizer supplies could eventually affect agricultural production and food availability across countries.
Fertilizer Supply Faces Shipping Challenges
Sitharaman said shipping disruptions around the Strait of Hormuz have increased insurance costs for vessels transporting fertilizers. The availability of ships and containers has also declined, adding further pressure to the global fertilizer supply chain.
She noted that there are currently no major problems in the Strait of Malacca. However, any disruption in the important shipping route could have a significant impact on global trade and international supply chains.
India Takes Steps to Protect Fertilizer Supplies
India has already started taking measures to deal with the situation, Sitharaman said. The government has established a ‘Shipping Emergency Fund’ to help reduce the rising insurance burden on ships bringing fertilizers into the country.
Despite the increase in fertilizer prices in international markets, the government is continuing to provide subsidies to ensure that higher costs do not put an additional burden on farmers.
The government is also working to increase domestic production capacity for urea and phosphate fertilizers. Sitharaman said these measures would take some time to deliver results but would help strengthen India’s fertilizer security in the long term.
India-US Trade Talks Reach Key Stage
Sitharaman also said that India-US trade agreement negotiations have reached a crucial stage. According to her, both countries may need to make certain adjustments and find mutually acceptable solutions to move the talks forward.
She said the United States is also exploring different approaches to reduce its trade deficit with India, beyond the options currently being discussed in the negotiations.
Shipping Disruptions Could Affect Agriculture
The Finance Minister warned that if shipping disruptions and rising fertilizer prices continue, the impact could extend beyond international trade and transportation.
Higher fertilizer and shipping costs could increase pressure on agricultural production and eventually affect food supplies. For India, strengthening domestic fertilizer production, maintaining subsidies and securing international supply chains will remain important to protect farmers and ensure food security.
