Enough fertiliser stock for kharif, gas supply disruption a concern: FAI

New Delhi, Mar 9 (PTI) India's fertiliser stockpiles are adequate to meet the demands of the upcoming kharif season, but a 40 per cent curtailment in gas supply and ongoing geopolitical tensions in West Asia have raised concerns over domestic urea production and the cost of imports, the Fertiliser Association of India (FAI) said Monday.

"At present, the immediate availability of fertilisers looks to be okay. The stock will be sufficient to meet the requirement of the forthcoming kharif season, although some shortage in supply of imported fertilisers is expected," FAI Director General Chaudhari Suresh Kumar told PTI.

As per official data, total fertiliser reserves stood at 177.31 lakh tonnes as of March 6, up 36.5 per cent from 129.85 lakh tonnes a year earlier.

Stocks of urea, the most consumed fertiliser and one heavily dependent on natural gas as feedstock, stood at 59.30 lakh tonnes. Diammonium phosphate (DAP) inventories were at 25.13 lakh tonnes, while NPKS fertiliser reserves reached 55.87 lakh tonnes.

Despite the comfortable current inventory, Kumar flagged gas supply as the sector's central concern.

"Our worry is about gas supply, which is curtailed up to 40 per cent. If the war continues, it will impact domestic production of urea for the rabi season," he said, adding that the industry expects the government to prioritise gas allocation to the fertiliser sector.

India faces up to 40 per cent cuts in LNG supply to urea producers due to Qatar's production pause amid the West Asia conflict.

Companies operating multiple plants are already adapting, they are shutting down one plant while keeping others running to manage operations within the constraints of reduced gas availability.

The summer months of March to May, typically a flat season for the industry, are also being used for routine maintenance, energy efficiency work and repairs.

Fertiliser companies have agreed to preponement scheduled plant shutdowns to March so that firms can utilise the period of global disruption without affecting peak-season output.

"Fertiliser companies are cautious. FAI is monitoring the situation," Kumar said.

The government is in discussions with countries including China to boost supplies of DAP, urea and water-soluble fertilisers, Kumar said.

It has already imported 98 lakh tonnes of finished fertilisers up to February 2026, with a further 17 lakh tonnes of shipments lined up for delivery over the next three months, as per the official data.

Indian companies have also secured long-term supply agreements with major international producers for phosphatic and potassic (P&K) fertilisers to guard against regional pricing and supply volatility.

The FAI DG said global prices of urea, DAP and sulphur have risen, and are expected to have an impact on domestic rates. "It is up to the government to subsidise. I am sure the government will protect the interests of farmers," Kumar said.

The Department of Fertilisers echoed that position last week, saying: "Farmers are the priority of the government, and their interests will not be compromised under any circumstances." Gas allocation to the fertiliser sector has been accorded top national priority following a high-level review meeting, the department added.

India imports around 30 per cent of its fertiliser requirement, with the Middle East accounting for 40 per cent of those imports. The region also supplies roughly 30 per cent of key raw materials and intermediates -- including rock phosphate, phosphoric acid and muriate of potash.

Rating agency Crisil has warned that ongoing regional uncertainties could disrupt supply chains and push up international prices for urea and DAP.

It also flagged that reduced LNG availability or higher LNG prices would either constrain urea production or raise input costs -- both of which could push the government's subsidy bill beyond budgeted levels.

Farmers have been urged to proceed with kharif preparations without panic. Sowing of kharif crops such as rice typically begins with the onset of the southwest monsoon in June. PTI LUX DRR