One million tons of fertilizer is stuck in the Strait of Hormuz on at least 20 ships. Fertilizer prices have spiked due to the Middle East conflict, which has severely constricted world supplies. Could this be make or break for Cambodian farmers, as the rice planting season approaches?
Urea nitrogen fertilizer prices have doubled since December 2025, because it is produced using natural gas. Around 20% of global supply of Liquified Natural Gas (LNG) is supplied by countries such as Qatar and Saudi Arabia in the Persian Gulf, and 83% of this is bound for Asia. These countries also manufacture 20-30% of global fertilizer for export – supplying 35% of urea globally.
Other essential ingredients affected include around 20% of global phosphate fertilizer. About 45% of Sulphur (created from oil and gas refining and essential for phosphate fertilizer production), is also affected by the disruption caused by the conflict.
Attacks on gas production facilities in the gulf have exacerbated problems, setting production back years. In March, Israel bombed Iran’s major South Pars gas field and in response Iran struck energy facilities throughout the gulf. Most significant was an attack on the gas facility at Qatar’s Ras Laffan, because it is a major supplier of fertilizer ingredients. Experts say it could take up to five years to complete the extensive repairs to the plant. One of the biggest fertilizer producers in the world, The Qatar Fertiliser Company (QAFCO),relies on this this supply source, and it was a major supplier of urea to Southeast Asia.
With the Strait of Hormuz blocked, tankers and container ships, including those shipping fertilizer, are unable to embark on their slow journey to Asia. Travelling at the pace of a scooter 30-40 km an hour, large container ships take about three weeks to make the journey, and longer if they are trying to save fuel. So, even if the blockades are lifted, big uncertainties remain as to whether enough fertilizer stocks will be available to supply Cambodian markets in time for the monsoon planting season.
Cambodian farmers, already feeling the pinch from domestic uncertainties, such as the fallout from the border conflict, face multiple obstacles. Global fertilizer stocks are already in high demand from farmers with earlier planting seasons, such as in Europe. Competition is likely to increase for constricted global supplies, pushing prices up.
China is a significant producer of fertilizer and before the war, did supply most Southeast Asian countries including Cambodia. But since March it has restricted exports in order to protect its domestic farmers and contain food prices. China expanded the scope of the export ban at the end of April by including ammonium sulphate fertilizer – its most common export. A crack down on customs inspections was also reported, to prevent unauthorised exports and ensure stocks stay in country.
In light of this, the Cambodian Government needs to clarify whether it has negotiated any arrangements to import Chinese fertilizer? If not, where else does it plan to get the quantities required, at a cost farmers can afford? Will it be subsidizing prices to support the rice crop? VoD put these questions to His Excellency Dith Tina, Minister of the Ministry of Agriculture, Forestry, and Fisheries (MAFF), but did not get a response.
The Thai-Cambodian border conflict exacerbates an already difficult situation. Until the conflict, Cambodia imported significant quantities of fertilizer from Thailand. Imports from 2020-2024 almost doubled up from $49 to $97 million per year. The border closure and boycott of Thai goods, has all but cut-off that supply channel.
Fertilizers were ranked highly by internally displaced households surveyed by the United Nations Development Programme (UNDP). Households placed it the seventh highest priority (in a list of 24) for livelihood support, to enable recovery of internally displaced households. Putting fertilizer ahead of roads, shelter and water access. Their response demonstrated how critical fertilizers are considered to be, by households dependent on the agricultural sector.
Fertilizer is not the only cost derived from fossil fuels of concern to farmers. One farmer who spoke to VOD, said that running his diesel irrigation pump and using his tractor are also adding costs.
So, what can be done about the crisis? In the short-term sourcing alternative supplies and ensuring that they are kept affordable for farmers (perhaps through government subsidies), must be priorities. Longer-term, producing domestic supplies could be explored, to ensure domestic food security.
In June 2025, Prime Minister Hun Manet announced domestic production of fertilizer as a strategic priority. Then in December 2025 the Mong Reththy Group announced construction of a fertilizer factory in Kampong Speu Province, to be completed by July 2026. Progress is unclear and positive news could help ease farmers’ nerves.
The situation may encourage farmers to explore other forms of agriculture, such as organic, that do not use high volumes of external inputs produced using fossil fuels such as gas. This also has the dual benefits of reducing Cambodia’s carbon footprint and dependence on increasingly costly foreign imports.
Demand for organic products continues to rise. However, while the organic approach may be attractive to smallholders in the medium-term, it also requires investment (such as for certification to prove that products meet organic criteria). In addition, making the transition takes time, which for this planting season may prove too soon.
The Government has not explained whether it has plans in place to ease the situation. The worst-case scenario, is that this year’s rice harvest is reduced, because fertilizer supplies are either not available, or are too costly for farmers. This could lead to upward pressure on rice prices, at a time when households are already struggling and can least afford it.
Sources
Jircas blog. Chokepoint: How War with Iran Threatens Global Food Security.
2025 Top 10 Urea Fertilizer Factory in the world
Shamim S., 19 March, 2026, Why are Iran’s South Pars and Qatar’s Ras Laffan so significant? Al Jazeera.
Mom Kunthea, 15 January, 2026, Cambodia bolsters agricultural independence with new large-scale fertilizer plant. Khmer Times.
European Commission. 7 April 2026. Monitoring of nitrogen-based fertilisers prices. United Nations in Cambodia. April 2026. Socio-Economic Impact Assessment of Cambodia – Thailand Border Conflict. p66, p87.
