Shutdowns prohibited in fertiliser units this fiscal
To prevent urea shortages for farmers during the kharif and rabi seasons, the government has barred fertiliser companies from scheduling plant shutdowns in FY26. This decision comes as India grapples with insufficient domestic urea production and ...
The government has prohibited fertiliser companies from scheduling plant shutdowns in FY26 in a bid to ensure that there is no shortage of urea for farmers during the kharif and rabi seasons.
In a note to top manufacturers earlier this month, the department of fertiliser said, "Considering the likely demand during the ongoing kharif season and upcoming rabi season, it is imperative that urea producing units take urgent steps and not plan any shutdown during the current fiscal year 2025-26." ET has seen a copy of the July 3 note.
Urea is the most widely used fertiliser which provides nitrogen to the soil and is crucial for plant development. India does not produce enough of it to meet domestic requirements.
In May this year, the country produced 22.36 LMT of urea against the target of 22.86 LMT, according to data from the department of fertiliser. It imported 2.91 LMT of urea during the month. However, the availability of urea was higher than the sales during the month, according to government data.
Meanwhile, China has been restricting exports of phosphate-a key ingredient for making DAP (di-ammonium phosphate)-to India for over two months now. This has led to a shortage of DAP-the second-most used fertiliser-from the beginning of the ongoing kharif season.
ADVERTISEMENT
Beijing has also stopped shipment of specialty fertilisers, which are used to increase the yield of fruits, vegetables and other remunerative crops.
China has not cited any reason for the squeeze on exports.
Although urea, DAP and specialty fertilisers are used for different purposes and cannot be used as a substitute for each other, the government still wants the industry to produce more urea as the others are in short supply, said an official.
However, a senior executive of a top fertiliser brand said, "Plants are shut down for maintenance purposes, failing which the efficiency of machines will be affected." He said maintenance must be done periodically and whenever needed. "It cannot be postponed."
