Canberra, April 17 Australia will import 250,000 tonnes of fertiliser urea from Indonesia under a deal announced by Prime Minister Anthony Albanese on Friday.
Albanese said in a joint statement with Foreign Affairs Minister Penny Wong and Minister for Agriculture Julie Collins that the deal between Australian supplier Incitec Pivot Fertilisers and manufacturer PT Pupuk Indonesia will supply 20 per cent of Australia's fertiliser needs for the current season.
"This is a significant outcome for our farmers. We understand how critical fertiliser is for Australian farmers, for our food production system and the food security of our region," he said.
It comes after Collins on Thursday announced that Australia would streamline the import process for fertilisers to mitigate supply issues caused by the conflict in the Middle East.
Around 60 percent of Australia's fertiliser urea imports were transiting through the Strait of Hormuz prior to the outbreak of the conflict.
Collins said on Friday that the Australian and Indonesian governments had worked to facilitate the deal, Xinhua news agency reported.
"This will mean Australia can continue to play an important role supporting food security in Indonesia and our region at a time of global uncertainty," she said.
Australia is one of the world’s biggest exporters of crops including wheat, barley and canola but relies on fertiliser imports that are threatened by the war on Iran, which has cut supply from the Middle East, a major urea producer.
The price of urea, a source of nitrogen that fuels plant growth, has risen by around 60 per cent in Australia since the war began in late February.
Many farmers now sowing winter crops are considering planting less to reduce their need for fertiliser, which even if available may cost too much. Fuel costs have also shot up, adding to pressure on farm budgets.
Australia has enough fertiliser for the coming weeks but must import around 1.3 million tonnes of urea to meet its needs during the remainder of the winter crop season, the government said.
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