Urea output falls to 18 lakh tonnes amid West Asia crisis

Urea production in India has fallen sharply amid disruptions linked to the West Asia conflict, even as authorities move to stabilise supplies through alternative sourcing and increased gas procurement, reported Times of India.

Domestic output declined to around 18 lakh tonnes this month from a typical monthly average of about 24 lakh tonnes, officials said, attributing the drop to supply-side constraints in gas availability and scheduling of plant operations. The government, however, expects production to recover as liquefied natural gas (LNG) availability improves through periodic “spot buying” arrangements.

The administration has maintained that fertiliser stocks remain sufficient and is working to strengthen supply chains. Several urea manufacturing units that had undergone annual maintenance shutdowns are now resuming operations.


At the same time, the Centre has advised states to closely monitor any unusual rise in fertiliser sales during the “lean season” to prevent hoarding and black marketing, with officials warning that strict action will be taken against such practices. Authorities have also sought to reassure farmers that adequate supplies of soil nutrients are available at prevailing prices.

Briefing reporters on Monday, Aparna Sharma, Additional Secretary in the Fertilisers Department, said the current stock of soil nutrients stands at 180 lakh tonnes, about 22% higher than the same period last year. She also outlined steps being taken to diversify import sources, including a global tender for 13.1 lakh tonnes of urea and long-term supply arrangements with countries such as Saudi Arabia and Oman. Additional sourcing is being explored from multiple countries including Russia, Morocco, Australia, Indonesia, Malaysia, Jordan, Canada, Algeria, and Egypt.

Sharma noted that the Gulf region plays a significant role in India’s fertiliser ecosystem, accounting for roughly 20–30% of urea imports, around 30% of diammonium phosphate supplies, and about 50% of LNG requirements. The ongoing conflict has driven up input costs, including LNG, ammonia, sulphur, and freight charges, adding pressure on the overall fertiliser supply chain.

She added that gas supply allocation notifications had affected domestic urea production, leading to a temporary reduction of around 30,000–35,000 tonnes per day. In response, some plants advanced their annual maintenance schedules. At present, 27 urea plants are receiving gas supplies, and previously shut units are preparing to restart operations.

To support production, the government has increased procurement of spot LNG, with availability currently at about 75–80% of requirements. Out of an estimated daily requirement of 52 million standard cubic metres of gas for fertiliser plants, approximately 15 mmscd is being sourced from the spot market.

Spot LNG purchases have been made at prices in the range of $19.5–19.6 per million British thermal unit, significantly higher than the pre-conflict levels of $11–12 per mmBtu. Officials cautioned that this rise in input costs is likely to substantially increase the government’s fertiliser subsidy burden in the coming months.

With inputs from TOI