Description
Sulphur Crisis Explained: Rising Prices Create a New Fertiliser Challenge for India | UPSC GS3 Economy & Agriculture
India solved its Urea crisis, but now a new problem is here - Sulphur Crisis! As per Indian Express (21 Sep 2026), sulphur prices have doubled to $1050-$1100 per tonne, creating a big fertiliser challenge for India.
In this video, Vajirao & Reddy Institute - India's Top Potential Training Institute for IAS explains complete analysis for UPSC Prelims & Mains GS3.
🔴 What is the Sulphur Crisis?
India's yearly sulphur consumption is 3.8-3.9 MT, fertiliser industry share is 2-2.1 MT. India imports 52% of its sulphur (2 Million Tonnes), 84% from Middle East. But prices have doubled since Jan 2026.
🔴 Why Prices are Rising? 2 Reasons:
1. SUPPLY SHOCK - WAR: 90% sulphur is byproduct of oil refining (56%) & gas processing (34%). Ukrainian drone attacks on Russian refineries + Iran targeting Saudi Aramco, QatarEnergy & ADNOC has cut sulphur output. Strait of Hormuz disruption since US-Israel attack on Iran (Feb 28) blocked shipments.
2. DEMAND SHOCK - EV BOOM: Sulphuric acid needed for phosphate fertilisers (DAP, SSP, NPK). Now same acid is needed to process Nickel for EV batteries in Indonesia. So Food Security vs EV Battery - direct competition!
🔴 Impact on India:
- DAP import dependence 68% in FY26, DAP price $900/MT. Subsidy burden may double from Rs 1.7 lakh crore to Rs 3.5 lakh crore.
- Ammonia prices up 60%, Sulphur up 50% since March 2026.
- Govt may ban sulphur exports (800,000 tonnes to China) & directed refineries to supply to fertiliser companies.
- Kharif 2026 at risk: Urea requirement 19.4 MT, availability only 5.5 MT.
GS3 Syllabus: Economy, Agriculture, Food Security, Energy Security, Geopolitics.
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