New Delhi, June 15 -- The reopening of the Strait of Hormuz following the US-Iran agreement to end the war could provide significant relief to India's fertilizer sector, easing supply concerns and lowering input costs that have weighed on the industry for months.

The sector has been under pressure since tensions in West Asia disrupted trade through Hormuz, a critical route for shipments of urea, ammonia, sulphur and liquefied natural gas (LNG)-key inputs in fertilizer production.

The development is significant for India as it depends heavily on overseas supplies of fertilizers and feedstocks. Industry estimates suggest the country relies on West Asia for around 40% of its fertilizer imports. Domestic manufacturing units have also been f...