“We are seeing the implications and more than the one aspect of pricing, the second aspect is just the availability,” Tamhane said, adding that shipping rates, marine insurance and energy prices have already climbed.
The conflict has already triggered sharp spikes in fertiliser prices globally, with some products rising 50-80%, raising concerns about input costs for farmers and supply chains tied to global agriculture.
The Strait of Hormuz is a critical corridor for energy and fertiliser feedstocks. Qatar alone accounts for a large share of global LNG supply used in fertiliser production and most of the Gulf country’s exports transit through this chokepoint.
However, the immediate impact on agrochemical availability is limited because companies typically build inventories months ahead of the planting season, Tamhane said.
“For the upcoming kharif season, most of the required products have already been manufactured and are in inventory or with distributors,” he said.