Rice farmers across South and Southeast Asia face mounting cost pressure ahead of the planting season as fertilizer prices spike, raising concerns over regional food supply, Nikkei Asian Review reported Wednesday.
Fueled by geopolitical instability in the Middle East, urea prices climbed 18% in April after surging 54% in March. Benchmark urea prices hit $857 per ton in April, according to the World Bank, more than doubling from a year earlier and surpassing March's four-year high, the report said.
This follows the closure of the Strait of Hormuz, which disrupted exports from Qatar and Saudi Arabia. The two countries account for roughly a third of global supply, according to the report.
Higher input costs are forcing farmers to cut fertilizer use, risking weaker yields as the rice-growing season begins. With Asia heavily reliant on Gulf supplies, prolonged disruption could trigger shortages, while rising energy and transport costs may push overall production expenses up by as much as 80%, the Nikkei said.
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