The World Bank has reported that fertilizer prices increased by 12 percent in the first quarter of 2026. The World Bank Group's fertilizer price index has shown an increase for the sixth time in the last seven quarters. This is the highest in four years. 

The World Bank's recently released 'April 2026 Commodity Markets Outlook' report states that the main reason for the disruption in supply due to the closure of the Strait of Hormuz due to the Iran-Israel war is the main reason. While the price increase of other fertilizers has been relatively moderate, the price of urea has increased the most.

The report states that the current price increase is much lower than the sharp surge seen in 2021 and 2022. Although there is no price pressure like in 2021-2022, the purchasing power of farmers for fertilizers has weakened sharply, increasing the risk to food production, agricultural resilience and food security, the World Bank concludes. 

Farmers in the northern hemisphere, including the US and Europe, have already secured most of their fertilizer supplies, natural gas prices (a key cost of nitrogen-based fertilizer production) have not risen as sharply as they did after Russia invaded Ukraine, and trade shipments from West Asia have gradually been diverted to land routes, the report said. 

The fertilizer price index is projected to rise by more than 30 percent in 2026, driven by rising production costs for nitrogen and phosphate-based fertilizers and continued strong global demand. Prices are expected to fall in 2027 as exports improve and new supplies become available. However, fertilizer prices are projected to remain high throughout 2026, as high energy prices persist and shipping and production disruptions linked to the Strait of Hormuz continue. The report also notes that millions of farmers around the world could be directly affected by the resurgence of global chemical fertilizer prices.

Urea prices have risen by 80 percent since February to above $850 per tonne. This is the highest level since April 2022. DAP prices have risen as sulfur costs have doubled and export restrictions have tightened supplies. Despite the increase in potash prices, the market is relatively well supplied.

Hormuz is a key shipping route for nitrogen-based fertilizers produced in West Asia. With the closure of the Hormuz waterway, fertilizer exports from West Asia have almost come to a standstill. This has had a direct impact on global supply and prices.

Amidst the continued volatility in global markets, urgent action is needed to protect farmers and safeguard the global food system. For this, strengthening supply chains, supporting trade routes and increasing investment in agricultural productivity are of utmost importance, the report states.

According to data from the International Fertilizer Association, West Asia accounts for about 25 percent of total global exports of urea, the world's most widely used fertilizer. West Asia also accounts for more than 15 percent of global exports of ammonia, the main raw material required for urea production. It is also said that the suspension of exports from the main supplier region has increased the risk of agricultural costs becoming more expensive worldwide.

Iran has completely stopped ammonia production amid the conflict, while the production of urea, ammonia and sulfur from Qatar has been suspended after damage to key industrial infrastructure. India has also cut urea and ammonia production due to a decline in the supply of liquefied natural gas. Restrictions on exports from the world's leading producer China and tight supplies have further raised concerns in the market.

The price of fertilizer in the international market has increased sharply due to the all-round crisis. As a result, the purchasing power of fertilizer for farmers has reached its weakest level since mid-2022. That is, chemical fertilizers have become more expensive. The price of DAP fertilizer, which was stable at the beginning of 2026, has increased by more than 10 percent in April. Its price has increased due to the tight supply of fertilizer in the market and a sharp increase in production costs.