Amid disruptions in gas and fertiliser supplies triggered by the ongoing conflict in West Asia, the Government has rolled out a comprehensive strategy to stabilise availability ahead of the Kharif 2026 sowing season, which begins with the monsoon around June 1. The approach focuses on boosting domestic urea production while simultaneously strengthening fertiliser imports to shield farmers from global supply shocks.
Protecting Farmers from Supply Volatility
According to the Department of Fertilizers, the government has combined production increases with a well-planned global procurement strategy. As a result, it aims to insulate Indian farmers from ongoing supply chain disruptions. Randhir Jaiswal, spokesperson for the Ministry of External Affairs, assured that fertiliser stocks remain adequate for the upcoming season. He added that global tenders were floated well in advance, receiving strong responses from multiple suppliers. Most of the ordered quantities are expected to arrive by the end of March, supported by a diversified sourcing strategy involving multiple countries.
Gas Supply Prioritised for Urea Plants
To address reduced capacity utilisation caused by limited LNG availability, the government has taken swift action. It has prioritised gas supply to urea plants under Priority II, following essential domestic LPG requirements. Additionally, authorities have committed to supplying 70% of the average gas requirement (based on the past six months) to these plants. This move ensures continuity in production despite global disruptions.
Increased LNG Procurement Boosts Supply
In a significant development, the government has secured 7.31 million metric standard cubic meters per day (mmscmd) of LNG from the spot market. This procurement will increase gas supply to urea plants by 23%, raising total availability from 32 mmscmd to 39.31 mmscmd. As a result, plants will now meet approximately 76% of their average gas demand, compared to 62% earlier. Although the spot LNG price is estimated at around $18/MMBtu, higher than long-term contract rates, the move ensures uninterrupted production.
Domestic Urea Output Set to Rise Sharply
With these interventions, domestic urea production is expected to increase significantly. The government projects output to rise by nearly 23%, from 54,500 tons/day to 67,000 tons/day. For instance, IFFCO has already achieved 100% capacity utilisation in three of its five plants, supported by improved gas allocation. The remaining plants are currently under maintenance, allowing gas diversion to operational units.
Global Sourcing and Import Strategy
To further strengthen supply, India is actively engaging with global suppliers, including Russia, Belarus, Morocco, and Canada. At present, the government is prioritising urea imports. However, it may expand procurement of DAP, TSP, and MOP depending on how the situation evolves over the next few weeks. Additionally, smaller volumes may be imported through negotiated deals to address immediate needs.
Outlook: Preparedness Key for Kharif Season
Overall, India’s proactive and diversified approach—combining domestic production boosts, strategic LNG procurement, and global sourcing—positions it well to manage fertiliser supply challenges. As reported by thehindubusinessline.com, if the geopolitical situation stabilises soon, supply chains could normalise quickly. However, the government’s preparedness ensures that farmers remain protected even if disruptions persist.
