WTO Warns Hormuz Closure may result Global Food Price Surge


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Geneva : The World Trade Organisation (WTO) has raised concerns that disruptions to fertiliser supplies caused by the closure of the Strait of Hormuz could lead to reduced agricultural output and rising global food prices.

In conversation with Agence France-Presse, WTO Deputy Director-General Jean-Marie Paugam said nearly one-third of the world’s fertiliser shipments typically pass through the critical maritime route, which has been largely shut since the escalation of conflict involving Iran.

He warned that the impact would not only be immediate but could worsen over time. “The effect compounds the following year: harvests shrink and prices rise,” Paugam noted.
Although the Gulf region holds significant reserves of natural gas—an essential component in producing synthetic fertilisers—ongoing conflict has severely disrupted production. Several manufacturing facilities have been forced to halt operations.

Major agricultural producers such as India, Thailand, and Brazil rely heavily on fertilisers like urea to sustain crop yields. While there is no immediate shortage, Paugam cautioned that prolonged disruption could hit supplies just as planting seasons begin for next year’s harvests.

The situation is particularly concerning for regions that depend heavily on food imports, especially parts of West and North Africa. The risk could intensify if countries begin stockpiling fertilisers, a pattern seen during the COVID-19 pandemic, further straining global supply chains.