Govt guarantees at least 70% natural gas supply to fertiliser plants amid West Asia crisis

The Government on Tuesday said fertiliser plants have been placed under 'Priority Sector-2' for natural gas supply
Alt="gas"
Govt guarantees at least 70% natural gas supply to fertiliser plants amid West Asia crisisPSU Watch
Published on

New Delhi: The Government on Tuesday said fertiliser plants have been placed under 'Priority Sector-2' for natural gas supply, thus guaranteeing them at least 70 percent of their average natural gas consumption to ensure domestic production of key soil nutrients remains insulated from global supply disruptions triggered by the ongoing conflict in West Asia.

Follow The PSUWatch Channel on WhatsApp

The average will be calculated on the basis of the previous six months' consumption, Ministry of Fertilisers said notifying decision in the Natural Gas (Supply Regulation) Order, 2026 on March 9.

"This measure aims to safeguard fertilizer production against global supply chain disruptions, particularly the LNG supply issues caused by the ongoing conflict in the Middle East," the ministry said in a statement.

The move comes amid concerns that political instability in West Asia could disrupt liquefied natural gas (LNG) shipments and affect fertiliser output ahead of the critical Kharif sowing season.

Senior officials from all fertiliser companies participated in a high-level meeting at the Department of Fertilisers on Tuesday, where they presented their preparedness status and flagged challenges. Officials from Ministry of Petroleum and Natural Gas also attended.

The Department of Fertilisers said India's total fertiliser reserve has reached 180.12 lakh tonne ahead of Kharif — a 36.6 per cent increase over 131.79 lakh tonne recorded on the same date last year. The surge has been driven largely by unprecedented accumulation of DAP (25.17 lakh tonne) and NPK/NPKS (56.30 lakh tonne).

As of March 10, stocks stand at: Urea — 61.51 lakh tonne; DAP — 25.17 lakh tonne; NPK — 56.30 lakh tonne; Potash — 12.90 lakh tonne; SSP — 24.24 lakh tonne.

Follow PSU Watch on LinkedIN

Alt="gas"
Oil ministry sets up panel as commercial LPG shortage hits hospitality sector

On the import front, the government has brought in 98 lakh tonne of urea as of February 2026, with an additional 17 lakh tonne in the pipeline over the next three months.

The department said an aggressive advance-stocking strategy during low-consumption periods has resulted in the large buffer, adding that despite disruptions in maritime transport, domestic supply to farmers will remain unaffected.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)

logo
PSU Watch
psuwatch.com