Overview
The Union Government has reassured the fertiliser industry that natural gas supply will remain a top priority as the Kharif season approaches. This assurance comes amid fears of a 40‑60% dip in gas imports due to geopolitical tensions involving Iran and Qatar.
Key Developments
- Government reports a 36.5% YoY increase in total fertiliser reserves, rising from 129.85 LMT (as of 6 Mar 2025) to 177.31 LMT by 6 Mar 2026.
- Stocks of Di Ammonium Phosphate (DAP) stand at 25.13 LMT, while combined NPK reserves total 55.87 LMT.
- Urea, the most consumed fertiliser, is available at 59.30 LMT.
- India imported 98 LMT of finished fertilisers up to Feb 2026, with an additional 17 LMT slated for the next three months.
- Fertiliser manufacturers have advanced plant‑maintenance schedules to March, utilising the low‑demand period.
Important Facts
Approximately 30% of India’s natural‑gas imports transit the Strait of Hormuz. According to the PPAC, over 85% of gas used for fertiliser production this fiscal year is imported, accounting for 29% of total gas consumption (domestic + imported).
Supply concerns intensified after QatarEnergy invoked force majeure following attacks on its facilities by Tehran, prompting the government to secure spot LNG cargoes and explore multiple global sources.
Exam Relevance
Understanding the nexus between energy security and agricultural inputs is vital for GS‑III (Economy) and GS‑II (Polity). The data illustrate how geopolitical shocks can affect domestic food‑grain production, a key component of India’s food‑security strategy. The government's buffer‑stock policy reflects the “strategic reserves” concept, often asked in questions on disaster management and supply‑chain resilience.
Way Forward
- Maintain and possibly expand the fertiliser buffer to hedge against future supply chain disruptions.
- Accelerate diversification of LNG import sources beyond the Strait of Hormuz corridor.
- Encourage domestic gas production and alternative feed‑stock options (e.g., bio‑fertilisers) to reduce import dependence.
- Continue close coordination between the Ministry of Fertilisers, Ministry of Petroleum & Natural Gas, and state governments to ensure seamless gas allocation during peak agricultural periods.
These steps will help safeguard the Kharif season sowing, stabilise farm‑gate prices, and uphold the government’s commitment to farmer welfare.