“The Strait of Hormuz is not only a major route for oil and natural gas shipments, but also a strategic corridor for transporting fertiliser, a key input for agriculture around the world. Analysts told CNBC that any disruption to shipping could raise farming costs, reduce crop yields and, ultimately, make food more expensive.”
“The Strait of Hormuz is a critical chokepoint for fertiliser transport. Countries such as Qatar, Saudi Arabia, Oman and Iran are major exporters of urea and phosphate fertilisers, and almost all of those shipments must pass through this route, Patel said.”
“South Asia and Southeast Asia will also struggle to avoid rising cost pressures. Major agricultural economies such as India, Bangladesh, Indonesia and Thailand all depend on fertiliser imports from the Gulf.”
“Professor Patel cited Thailand as a notable example, saying that Thai farmers rely on imports for 90% of their fertiliser, especially urea, which is produced from gas and shipped through Hormuz. ”
“He said it is also priced in US dollars, at a time when the dollar is strengthening because of geopolitical risk. This means farmers are being hit on every cost front at once.”
“Rice and maize, two of Asia’s main crops, require large amounts of fertiliser. Analysts believe Indonesia and Bangladesh are likely to be among the hardest hit countries in the region.”