China announced Friday, March 13, that it will release fertilizer from national commercial reserves ahead of the spring planting season after the effective closure of the Strait of Hormuz disrupted global supply chains. The move, confirmed by the China Agricultural Means of Production Association, seeks to stabilize prices and ensure farmers have access to critical crop nutrients during a period of tight global fertilizer availability.

The decision comes at a sensitive time for global agriculture markets. Farmers across the Northern Hemisphere are preparing for spring planting, a period when demand for nitrogen and phosphate fertilizers peaks. By tapping national reserves earlier than usual, Chinese authorities aim to prevent shortages that could affect crop yields and agricultural productivity.

China typically releases fertilizer reserves once a year before the spring plowing season, but this year the drawdown is occurring at least 15 days earlier than in previous cycles, according to a Beijing-based fertilizer analyst familiar with the market. The reserves include nitrogen, phosphate, and compound fertilizers, key inputs for staple crops such as corn, wheat, and rice. Officials also instructed storage companies and distributors to accelerate the sale of inventory to support market stability and prevent price spikes.

Reports of supply constraints have already emerged in key agricultural provinces including Henan and Shandong, where farmers recently complained about shortages of phosphate fertilizer as field preparations intensify. These regions are among China's most important grain-producing areas, making fertilizer availability a critical factor for maintaining crop yields and ensuring domestic food security.

The early release of reserves comes as the closure of the Strait of Hormuz disrupts one of the world's most critical shipping corridors for energy and industrial commodities. Escalating conflict in the Middle East has already forced the shutdown of several fertilizer plants in the region while complicating maritime transport routes for bulk shipments. The disruption is now threatening supplies to major importers such as India, one of the largest fertilizer buyers globally.

The timing is particularly concerning for agricultural markets. Farmers across North America, Europe, and Asia are entering planting season, when fertilizer demand typically surges and supply disruptions can quickly translate into higher input costs. Analysts say the market was already tight before the Hormuz disruption. China had restricted fertilizer exports earlier this year to secure domestic supply, a policy that significantly reduced global availability of certain crop nutrients.

China, the world's largest producer of urea, tightly manages fertilizer exports through quotas. According to industry sources, no export permits for urea shipments have been issued so far in 2026. Despite the geopolitical disruptions affecting global supply chains, China's domestic fertilizer production remains robust.

The country is expected to produce around 76.5 million metric tons of urea this year, according to the China Nitrogen Fertilizer Industry Association. That would mark a record level of output for the world's largest urea producer. However, analysts warn that a prolonged conflict in the Middle East could still reduce global fertilizer production capacity, tightening supplies further and pushing up input costs for farmers worldwide.