India is weighing a proposal to impose restrictions on sulphur exports amid concerns over rising prices and supply disruptions, according to sources familiar with the matter. The move comes as the country faces tightening sulphur availability, driven largely by reduced imports from the Gulf region and potential export curbs by China.

Sulphur plays a crucial role in fertilizer production in India, particularly for ammonium sulphate and single super phosphate, both widely used in the agricultural sector. India meets more than half of its annual sulphur demand—approximately 2 million tonnes—through imports, with nearly 50 percent coming from West Asia. The ongoing conflict in the region, notably involving Iran, has contributed to supply uncertainties. Additionally, China is expected to limit its sulphuric acid exports starting next month, further constraining global supplies.

A senior government official involved in the discussions indicated that allowing continued sulphur exports could exacerbate domestic shortages and put additional upward pressure on prices. India currently exports around 800,000 tonnes of sulphur annually, with over 90 percent of that volume destined for China. Industry representatives have urged the government to implement an export ban to safeguard domestic availability.

To address the issue, New Delhi has already instructed oil refineries—which generate the majority of the country’s sulphur as a byproduct during petroleum processing—to prioritize supplying fertilizer manufacturers. The proposed export restrictions are part of broader measures aimed at ensuring stable sulphur access for Indian agriculture amid global market disruptions.

The potential export curbs from India, combined with supply challenges stemming from the Middle East and export limitations anticipated from China, could contribute to further upward pressure on global sulphur prices. Officials continue to evaluate the situation, balancing domestic agricultural needs against trade considerations.