Fertiliser Stocks Adequate, Fuel Supply Stable: Government Reviews Impact of West Asia Crisis

   

SRINAGAR: The Government of India on Monday said adequate stocks of fertilisers and fuel are available across the country, even as tensions in West Asia continue to disrupt global supply chains and energy routes.

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At an inter-ministerial briefing held at the National Media Centre, officials from the Ministries of Petroleum and Natural Gas, External Affairs, Ports, Shipping and Waterways, and the Department of Fertilisers outlined contingency measures to ensure stability in supplies and prevent market disruptions.

Officials said the country has sufficient fertiliser stocks ahead of the Kharif 2026 season, with total availability at around 180 lakh tonnes compared to 147 lakh tonnes during the same period last year. The estimated requirement for the upcoming season is around 390 lakh tonnes.

Despite volatility in global markets, fertilisers are being supplied to farmers at unchanged prices. Authorities emphasised there is “no need for panic,” noting that April and May — lean agricultural months — are being used to build buffer stocks.

The government also flagged challenges arising from the West Asia situation, as the Gulf region accounts for 20–30 percent of India’s urea imports and 30 percent of DAP imports, along with nearly half of LNG supplies used in domestic fertiliser production. Rising global prices of LNG, ammonia and sulphur, along with higher freight costs, have added pressure to supply chains.

To mitigate risks, sourcing has been diversified across countries including Russia, Morocco, Australia, Indonesia, Jordan, Canada and Egypt. Long-term agreements have been secured for DAP from Saudi Arabia, while additional urea supplies are being sourced from Oman and Saudi Arabia.

A dedicated task group has been set up to monitor global availability and coordinate imports, while 16 Indian missions abroad are actively identifying alternative supply sources.

Gas supply to urea plants, initially reduced to 60 percent, has been raised to 75–80 percent through alternative arrangements, boosting production by up to 15,000 tonnes per day. While output remains lower than last year, officials said the gap has narrowed significantly.

The government has also directed refineries to supply sulphur to fertiliser companies and established a contingency “war room” for real-time monitoring of production, imports and distribution.

Strict action is being taken to prevent diversion, black-marketing and hoarding under the Essential Commodities Act, with states asked to maintain vigilance and improve distribution efficiency.

On the energy front, the government said all refineries are operating at high capacity, maintaining adequate inventories of crude oil, petrol and diesel despite disruptions linked to the Strait of Hormuz.

To ensure domestic availability, excise duty on petrol and diesel has been reduced by Rs 10 per litre. Export levies of Rs 21.5 per litre on diesel and Rs 29.5 per litre on aviation turbine fuel have also been imposed.

Retail fuel outlets across the country are functioning normally, though isolated instances of panic buying have been reported. Authorities urged the public not to rely on rumours, reiterating that sufficient stocks are available nationwide.

The government said domestic PNG supply and CNG transport have been given top priority, with 100 percent allocation maintained. Supplies to industrial and commercial users are being sustained at around 80 percent of normal consumption.

City gas distribution companies, including IGL, MGL, GAIL Gas and BPCL, have been directed to expand PNG connections, particularly for commercial establishments such as hotels and restaurants, to ease pressure on LPG supplies.

The Centre said it has been in constant touch with state governments to prevent panic and ensure smooth distribution. The Chemicals and Fertilisers Minister has already held consultations with multiple chief ministers and agriculture ministers.

States have been advised to crack down on hoarding and ensure last-mile availability, while also promoting alternative fertilisers such as ammonium sulphate, SSP and nano fertilisers.

Separately, Prime Minister Narendra Modi spoke with Mohammed bin Salman, appreciating continued support for the welfare of the Indian community in the region amid the ongoing crisis.

Officials maintained that there is no major requirement for additional fertiliser supplies over the next two-and-a-half months and reiterated that the government is working around the clock with producers, importers, ports, railways and states to ensure uninterrupted availability.

With global uncertainties persisting, the government said it remains prepared to take further measures to stabilise supplies and shield domestic consumers from volatility.

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