India Weighs Sulphur Export Curbs Amid Supply Disruptions

India is considering restricting sulphur exports following concerns raised by industry groups over rising prices and supply disruptions, particularly from the Gulf region.

Key Drivers

• Supply chains have been strained due to tensions linked to the Iran war.
• Disruptions in shipments through the strategically vital Strait of Hormuz have worsened shortages.
• Additional pressure is expected as China plans to limit sulphuric acid exports.

India’s Sulphur Dependence

• India imports over 50% of its sulphur needs, amounting to about 2 million metric tons annually.
• Nearly half of these imports come from the Middle East.
• At the same time, India exports around 800,000 tons, with over 90% going to China.

Policy Response

• The government has already directed domestic oil refineries—major sulphur producers—to prioritise supply to fertiliser companies.
• Export restrictions are being considered to stabilise domestic availability and prices.

Global Impact

• Any curb on Indian exports may push global sulphur prices higher, given tightening supplies.
• The Middle East contributes about one-fourth of global sulphur production, making disruptions there highly significant.

Sectoral Implications

• Fertiliser Industry: Sulphur is critical for producing fertilisers such as ammonium sulphate and single super phosphate, widely used in Indian agriculture.
• Mining Sector: Shortages are also affecting mining operations, where sulphuric acid is used in leaching processes to extract metals from ores.