Hormuz disruption drives global sulphur, fertilizer prices to crisis levels

The ongoing disruption at the Strait of Hormuz is sending shockwaves through global agricultural supply chains, with sulphur prices surging above $1,000 per tonne and fertilizer costs climbing across Asia, compounding food security concerns from Tokyo to New Delhi to Singapore.

Sulphur Spike Hammers Fertilizer Producers

Spot sulphur prices have risen more than 300% since August 2025, recently breaking through the $1,000-per-tonne barrier, according to industry analysts at Prismane Consulting. In India, Fertilisers and Chemicals Travancore reported a standalone net loss of ₹61.94 crore for the quarter ended June 30, 2026, swinging from a net profit of ₹4.28 crore a year earlier, as raw material costs ballooned to 80% of revenue. The company's EBITDA turned negative at a loss of ₹29.80 crore, compared with a profit of ₹23.98 crore in the same period last year.sahi+1

The Indian government has already spent over 56% of its annual ₹1.77 lakh crore fertilizer subsidy budget in the first four and a half months of the fiscal year, and is now exploring emergency financial aid and revisions to the Nutrient Based Subsidy framework to keep domestic producers afloat. In May, top Indian fertilizer companies formed a collective to issue a joint tender for nearly 594,000 metric tonnes of sulphur to improve their bargaining position in a volatile market.sahi

Japan and Asia Face Mounting Pressure

Japan, heavily reliant on maritime supply routes through the Middle East, is facing sharp fertilizer cost increases as importers contend with surcharges, logistical premiums, and inventory shortages. Agricultural organizations in the country have warned that prolonged disruption could threaten the viability of small and medium-scale farming operations.english.globalarabnetwork

The crisis traces back to the effective closure of the Strait of Hormuz to normal commercial traffic beginning February 28, 2026. Vessel transits through the strait fell to just seven on September 3, well below the 10-day average of 14, Reuters reported. The U.S. and Iran traded strikes in the strait as recently as early September, with Tehran announcing plans for a new "exclusion zone" near the waterway.carraglobe+3

Food Security Alarms Across the Region

The fertilizer squeeze is amplifying broader food security anxieties. In Singapore's Parliament on September 9, Minister for Sustainability and the Environment Grace Fu acknowledged that while shelves remain stocked, the country is "not totally out of the woods yet" as geopolitical tensions continue to tighten fertilizer supply globally. She warned of "two shocks — one geopolitical, one climatic — compounding each other, threatening the supply of rice, the world's most consumed staple".stomp

Meanwhile, Philippine Agriculture Secretary Francisco Tiu Laurel called for stronger ASEAN-India cooperation at a ministerial meeting in New Delhi, warning that "volatility in energy, transport, food and agricultural input markets" is testing the resilience of the region's food systems. The International Food Policy Research Institute has cautioned that the Iran conflict's disruption of energy and fertilizer supply chains risks sparking another global food crisis.tribune+1