India, a major fertilizer importer, received offers in a urea tender nearly 10% below its August purchase price, signaling some relief for global farmers who have faced surging input costs this year. 

Indian Potash Ltd., which also imports urea on behalf of the government, received offers for the west coast between $356.25 and $416.50 a ton in a tender that closed Wednesday, according to traders with direct knowledge of the tender. Offers for supplies to the east coast ranged between $352.10 and $465 a ton, they said. 

In both regions, the total volume offered was more than double the amount the agency is seeking.

India’s purchases are closely watched as a price benchmark for other importers, who have faced volatile costs this year after the war in Iran curbed the vital Middle Eastern supply. The country paid as much as $959 a ton for urea when the conflict began earlier this year. Prices have since plunged as supply constraints eased while global demand weakened. In its last tender in August, the South Asian nation bought supplies at $390.25 to $393.65 a ton.

The decline could signal some relief for farmers worldwide, who are grappling with expensive costs for other key inputs, such as diesel. In India, farmers are preparing to sow crops like wheat, rapeseed and chickpeas in the approaching winter planting season, boosting demand for urea, a key nitrogen-based nutrient needed for crop growth. Lower import prices could also reduce pressure on the government’s fertilizer subsidy bill.

A fertilizer ministry spokesperson did not immediately respond to a request for comment.