Adds Mundra port closure confirmation
The Indian government has warned that Cyclone Biparjoy could sweep across the country's northwest coast in the coming days, halting operations at major fertilizer discharge ports Mundra, Kandla and Pipavav in the state of Gujarat.
Operations at the port of Pipavav have been suspended since late evening on 10 June, according to a stock exchange filing from the port's operating firm. Pipavav is an important hub for fertilizer imports on the Indian west coast, with 1mn t of urea and just over 840,000t of DAP having been received last year, Argus' line-up and GTT trade data show.
Operations at the major discharge ports of Kandla and Mundra have also halted because of the cyclone, sources said. Publicly listed Adani Ports and SEZ have confirmed that it halted vessel operations at Mundra and Tuna on 12 June because of the cyclone, according to a stock exchange filing.
Mundra received 2.3mn t of DAP and 1.78mn t of urea last year, while deliveries to Kandla were 1.29mn t and 1.89mn t of DAP and urea, respectively.
The cyclone is expected to move through northwest India and Pakistan, crossing between Gujarat and Karachi by 12:00 local time (06:30 GMT) on 15 June, with a sustainable wind speed of 125-135kph, according to an update from the country's meteorological department on 12 June.
The three ports of Pipavav, Mundra and Kandla similarly were top destinations of NPK/NPS and potash, having received a combined 1.02mn t of NPK/NPS and more than 935,000t of MOP last year, Argus' line-up data show.
Gujarati ports are also key hubs for receipts of raw materials.
Iffco, the country's largest domestic fertilizer supplier, operates a phosphates and specialties facility at Kandla, where it received 1.96mn t of phosphoric acid and 520,000t of ammonia last year, according to line-up data. The Kandla unit produced 2.49mn t of NP, NPK, DAP and specialty fertilizers in the 2022-23 year, running from April-March, the firm said in its latest annual report.
Sikka is also a discharge point for Gujarat State Fertilizers, where deliveries of phosphoric acid and ammonia totalled 144,000t and 51,000t, respectively, last year.
There has been no official confirmation on port operations at Sikka, but private-sector refiner Reliance Industries has declared force majeure at its main export terminal at the port because of the cyclone.
