In a situation that could affect India's agricultural supply chain, China has stopped exporting speciality fertilisers to India for the past two months, according to senior executives from major importing companies who spoke to the Economic Times.

These fertilisers, which help improve the output of fruits, vegetables and other high-value crops, are still being shipped from China to other countries.

"China has been limiting speciality fertiliser suppliers to India for the past four to five years. But this time, it is a complete stoppage," opined Rajib Chakraborty, President, Soluble Fertiliser Industry Association.

Shipments from Chinese factories are being delayed by government inspections, and according to sources quoted in the report, China has avoided inspecting cargo meant for India and is using different methods to block exports without announcing an official ban.

China accounts for almost 80 percent of the speciality fertilisers that India imports, and this recent halt marks a clear shift from partial restrictions in earlier years to a full suspension of supply.

Speciality fertilisers are non-subsidised nutrients for the soil, which include water-soluble fertilisers and liquid fertilisers used in foliar spray and fertigation, as well as controlled release fertilisers, slow-release fertilisers, micronutrient fertilisers, fortified fertilisers, customised blends, nano fertilisers, bio-stimulants, organic and other advanced fertiliser types.

These products have gained popularity because they deliver nutrients in a focused way and help reduce damage to the environment.

As per industry estimates, India usually imports between 150,000 and 160,000 tonnes of speciality fertilisers during the June to December period, and while domestic demand is growing, data from the Fertiliser Association of India shows that the market for micronutrient fertilisers in India is expected to reach one billion dollars by 2029.

However, making these fertilisers in India is still not a practical option.

India does not yet have the technology to manufacture speciality fertilisers in large quantities because demand so far has not been high enough to justify the cost of setting up production plants within the country.

"However, speciality fertilisers now substitute primary fertilisers, thus boosting their volume of consumption," Rajib Chakraborty said to Economic Times, pointing out that many companies are now thinking about building their own manufacturing units.

Companies like Deepak Fertilisers, Paradeep Fertilisers and Nagarjuna Fertiliser Company are already working in this segment.

Apart from fertilisers, China has also been limiting the export of important raw materials like rare earth magnets, which is seen as a possible reaction to tariffs and other trade restrictions.