China allows fresh urea exports amid Iran war-fuelled fertiliser crisis, sources say

China has issued export quotas for urea fertilizer, sources with direct knowledge of the matter said, a move that could help ease soaring global prices for one of the world's most widely used crop nutrients after supply disruptions linked to the Iran war.

One of the world's largest fertilizer exporters, China banned exports of many categories in March to protect domestic farmers from the surge in prices triggered by the closure of the Strait of Hormuz, through which a large share of global fertilizers and their inputs normally flow.

Urea exports are managed by a quota system and the issuance of quotas is a signal authorities are confident there is enough supply domestically to release some for export.

Two Chinese urea producers confirmed to Reuters that they had received export quotas but declined to provide further details. An Indian importer also said the Chinese government had issued a notification permitting urea exports, though no specifics were disclosed.

China's General Administration of Customs and National Development and Reform Commission did not immediately respond to requests for comment.

Domestic urea prices in China remain well below international levels and new export quotas are likely to be welcomed in particular by India, which imported more than 40% of its urea, a nitrogen-based fertiliser, and diammonium phosphate, a widely used phosphate-based one, from the Middle East last year. 

In March, India asked China to allow the sale of some urea cargoes as the U.S.-Israeli war on Iran disrupted gas supplies and threatened fertiliser production, Bloomberg News reported. 

"We will prefer Chinese supplies in the current situation as shipments are far more predictable," said a senior official with an Indian fertiliser-producing company. "They do not have to pass through the Strait of Hormuz and are therefore more likely to be delivered on time." 

Several fertiliser industry sources and social media accounts said that around 1.5 million metric tons of urea will be allocated, although Reuters could not independently verify the total volume.

China exported 4.9 million tons of urea in 2025, below its historical range of 5 million to 5.5 million tons, which usually accounts for around 10% of global urea exports, according to StoneX, a consultancy.