Aya Adachi
In June 2024, the People’s Republic of China (PRC) introduced fresh restrictions on its fertilizer exports, impacting global food and fertilizer supply (Bloomberg, June 24, Sina.com.cn, July 12). PRC Customs data show that urea fertilizer exports, which have been particularly low all year, dropped sharply following the imposition of controls. Only 105,000 metric tons were exported in July and August, down from 637,000 metric tons in the same period last year (General Administration of the PRC [GACC], accessed October 1). Urea exports are seasonal and usually increase in August and peak in September. The government’s National Development and Reform Commission (NDRC) has taken the decision to restrict exports several times since 2021 to stabilize domestic prices and safeguard the country’s domestic food security (NDRC, July 30, 2021; GACC, October 11 2021; Reuters, September 8, 2023).
The PRC plays an outsized role in the global fertilizer market. In 2023, it accounted for 24 percent of worldwide consumption and 75 percent in East Asia (International Fertilizer Association [IFA], August 20). This means that the PRC’s decisions as a key producer of urea and phosphate-based fertilizer can have a major impact on international trade. As a result, many of its Asian trade partners—including South Korea and India—have reconsidered their reliance on PRC fertilizers, turning instead to alternative suppliers (Business Korea, September 11; Reuters, December 18, 2023).
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