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Beijing’s decision follows Trump’s latest trade measures, doubling tariffs on Indian goods to 50% as a penalty for its purchases of Russian oil.
India, the world’s largest importer of the crop nutrient, could purchase as much as 300,000 tonnes from China.
China has relaxed restrictions on urea shipments to India, signalling a possible easing of tensions between Beijing and New Delhi, Bloomberg has reported, citing people familiar with the matter. The move comes as US President Donald Trump’s trade policies target both Asian nations.
India, the world’s largest importer of the crop nutrient, could purchase as much as 300,000 tonnes from China, according to the report. China, a major exporter of the nitrogen-based fertiliser, has curtailed sales in recent years.
According to the Bloomberg report, Beijing’s decision follows Trump’s latest trade measures, doubling tariffs on Indian goods to 50% as a penalty for its purchases of Russian oil, a step that has “helped warm ties” between the two countries.
Relations between India and China hit a low in 2020 after deadly border clashes that killed 20 Indian soldiers and an undisclosed number of Chinese troops. Recently, India allowed tourist visas for Chinese nationals after years of restrictions, and Prime Minister Narendra Modi may meet Chinese President Xi Jinping on the sidelines of a summit in Tianjin starting August 31, the report said.
The Ministry of Commerce in Beijing did not immediately respond to a fax seeking comment, while India’s Ministry of Chemicals and Fertilizers also did not reply to a request for comment, Bloomberg said.
In 2023, almost half of China’s urea exports went to India, but Beijing halted sales to all destinations last year. The ban was partially lifted in June, though restrictions on India remained until now.
While the planned 300,000-tonne volume is relatively small, it could grow into a significant trade flow, easing tight global supplies and cooling high prices. India imported about 5.7 million tonnes of urea in the fiscal year ended March 31 — down nearly 20% from a year earlier — according to the Fertiliser Association of India. Purchases from China fell sharply to around 100,000 tonnes in 2024-25 from 1.87 million tonnes a year earlier.
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al…Read More
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al… Read More
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