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Relevance: GS-II (IR) | GS-III (Economy & Agriculture) | Source: The Hindu

The News: Global sulphur prices have skyrocketed nearly fourfold, jumping from $280 to over $1,050 per tonne. Driven by wars in West Asia and a massive demand surge from the electric vehicle (EV) boom, this “sulphur squeeze” is threatening India’s fertilizer industry and ballooning its import bill.

1. Where Did All the Sulphur Go?

Unlike gold or iron, sulphur isn’t primarily dug out of mines. About 92% of the world’s sulphur is actually a leftover byproduct created when cleaning up oil and natural gas.

  • The West Asian Conflict: West Asia supplies nearly 90% of India’s sulphur imports. Recent military clashes heavily disrupted these vital shipping routes.
  • Russian Export Bans: Russia, a major producer, faced drone strikes on its refineries and blocked exports to keep its own factories running.

2. The Unexpected Culprit: Electric Vehicles

While traditional sulphur is used to make farm fertilizers, a massive new chunk of demand is now coming from clean energy.

  • Extracting EV Metals: Making lithium-ion batteries requires nickel. Extracting that nickel requires massive amounts of sulphuric acid, causing countries like Indonesia to aggressively buy up global supplies.

Value Box: Key Concepts & Schemes
The By-Product Paradox Because 92% of sulphur comes from cleaning fossil fuels, its supply depends on oil refining, not sulphur demand. As the world transitions away from oil, shortages could get worse.
HPAL Technology High-Pressure Acid Leach is the chemical process using massive amounts of sulphuric acid to extract battery-grade nickel, directly tying green transport to sulphur use.
Nutrient Based Subsidy (NBS) Under this scheme, the government subsidizes key agricultural nutrients, including sulphur. Skyrocketing global prices will likely bloat India’s fiscal subsidy budget to protect farmers.

Practice MCQ

Q. Consider the following statements regarding global sulphur supply and industrial demand:

  1. The vast majority of global industrial sulphur is directly mined from natural underground sulphur deposits rather than extracted as a by-product.
  2. Sulphuric acid plays a critical role in hydrometallurgical processes like High-Pressure Acid Leaching (HPAL) used for electric vehicle battery mineral extraction.

Which of the statements given above is/are correct?

(a) 1 only     (b) 2 only     (c) Both 1 and 2     (d) Neither 1 nor 2

Answer: (b) 2 only
Hint: Statement 1 is incorrect because roughly 92% of global sulphur is recovered as a by-product of petroleum refining and natural gas processing, not mined directly. Statement 2 is correct, as HPAL requires massive quantities of sulphuric acid to extract battery-grade nickel.

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