US Blockade & Indian Policy Affect Fertilizer Supplies & Distribution

May

2026

Under the US War Powers Act of 1973, the US President can deploy troops to respond to an 'imminent threat' but must receive Congressional approval within 60 days to continue military operations. 1 May was the day President Donald Trump needed to get Operation Epic Fury on Iran approved. Instead, he chose to send a letter to Congress leaders that hostilities with Iran have 'terminated', suggesting that the 60-day deadline to seek approval was no longer applicable. Meanwhile, the US blockade of the Strait of Hormuz continues and Iran's new proposal asks the US to end the war on all fronts, including Lebanon, lift the naval blockade, withdraw forces, and establish a new governing mechanism for the Strait. However, dozens of tankers reportedly continue to slip through the US blockade. These ships stay within the nautical limits of Iran, Pakistan, and India without entering international waters, and move from Iran's Kharg Island to India’s Mumbai. Still, these are a fraction of the Strait’s normal traffic. Additionally, fertilizer producers are currently using vessels locked in the Strait as storage, ready to move once the waterway reopens. But with the route still essentially closed, laden ships cannot exit and empty ones aren’t coming in for refills. A senior analyst at a global consultancy Pranshi Goyal says, 'The longer this situation lasts, the greater the risk that producers are forced to shut down because storage fills up and there is simply nowhere left to put the product.' However, on 28 Apr in Panjab, nearly 15K seed and fertilizer dealers across the state suspended operations in an India-wide protest against the union government policies. The dealers allege that they are being coerced into 'mandatory bundling' practices and are being unfairly held liable for the failure of government-supplied seeds. The Agri Inputs Dealers Association alleged that fertilizer companies are conditioning the supply of essential Diammonium Phosphate (DAP) on the mandatory purchase of nano urea and nano DAP. Though India is rapidly promoting nano urea and nano DAP, a Punjab Agricultural University study in 2024 showed a significant decrease in wheat (up to 21.6%) and rice (13%) yields and also a decrease in protein content of the grain when nano urea was used as a full substitute for conventional urea (earlier coverage).