India raises gas supply for fertilizer firms as imports improve

India has increased the allocation of natural gas to urea plants as supply improves after disruptions due to the Middle East crisis, according to the oil ministry.
Overall gas supply to fertilizer plants has been raised to about 90% of their average consumption, from 70% to 75%, Sujata Sharma, a joint secretary in the ministry, told reporters in New Delhi on Monday.

India had faced supply constraints after liquefied natural gas shortages linked to the Iran war forced some urea manufacturers to shut their plants ahead of the monsoon planting season. LNG is a key raw material to produce the crop nutrient, and the nation is the world’s largest importer of urea, a type of fertilizer.


The government made the decision to increase the gas allocation based on available inventory and scheduled LNG arrivals, according to an oil ministry statement on Sunday.

The nation is also looking to secure imports, with Indian Potash Ltd. issuing a tender over the weekend to buy 2.5 million tons of urea. It regularly purchases the crop nutrient through global tenders to meet local demand. Sowing for the new crop, especially rice, corn and soybeans, is set to begin in a couple of months.