In a move aimed at protecting domestic fertiliser production, the Indian government has placed fertiliser plants under “Priority Sector-2” for natural gas supply. The decision ensures that fertiliser manufacturers will receive at least 70% of their average natural gas requirement, helping them maintain steady production even if global energy supplies face disruptions.
The decision was officially notified under the Natural Gas (Supply Regulation) Order, 2026 on March 9 by the Ministry of Fertilisers.
Why the Government Took This Step
The government introduced this safeguard mainly due to concerns about global supply chain disruptions, particularly those linked to the ongoing conflict in West Asia.
Liquefied Natural Gas (LNG) is a key input used in fertiliser manufacturing, especially in the production of urea, one of the most widely used fertilisers in India. Any disruption in LNG shipments could directly affect fertiliser output and eventually impact farmers.
According to the Ministry of Fertilisers, the policy aims to ensure that fertiliser production remains stable even if global energy supplies become uncertain.
The ministry said the measure will help shield fertiliser plants from LNG supply problems triggered by geopolitical tensions in the Middle East.
How the New Policy Works
Under the new regulation, fertiliser plants will be guaranteed 70% of their average natural gas consumption.
The average consumption will be calculated based on the gas used by plants during the previous six months. This ensures that companies receive enough gas to continue operations without major disruptions.
The move is especially important as India prepares for the Kharif sowing season, when demand for fertilisers increases significantly across the country.
Meeting with Fertiliser Industry Leaders
To assess the preparedness of the industry, the Department of Fertilisers recently held a high-level meeting with senior officials from fertiliser companies.
Officials from the Ministry of Petroleum and Natural Gas were also present during the discussions.
During the meeting, companies shared updates about their production readiness and highlighted potential challenges they could face if global supply disruptions intensify.
The government assured the industry that it is closely monitoring the situation and will take necessary steps to maintain fertiliser production.
India’s Fertiliser Stocks Rise Significantly
India has also strengthened its fertiliser reserves ahead of the upcoming agricultural season.
The Department of Fertilisers said the country’s total fertiliser reserves have reached 180.12 lakh tonnes, which is 36.6% higher than the 131.79 lakh tonnes recorded during the same period last year.
The large stockpile has been mainly driven by higher accumulation of:
DAP (Di-Ammonium Phosphate): 25.17 lakh tonnes
NPK/NPKS fertilisers: 56.30 lakh tonnes
These stocks are expected to help ensure a steady supply for farmers during the Kharif season.
Current Fertiliser Stock Position in India
As of March 10, 2026, the country’s fertiliser stock levels include:
Urea: 61.51 lakh tonnes
DAP: 25.17 lakh tonnes
NPK: 56.30 lakh tonnes
Potash: 12.90 lakh tonnes
SSP: 24.24 lakh tonnes
These reserves provide a strong buffer against any potential supply disruptions.
Urea Imports Also Strengthening Supply
Apart from domestic production, the government has also ensured strong fertiliser imports.
India has already imported 98 lakh tonnes of urea as of February 2026, and an additional 17 lakh tonnes of urea imports are expected over the next three months.
Officials said that the government’s advance stocking strategy during periods of low demand has helped build a large buffer of fertilisers.
Even though global shipping and logistics have faced some disruptions, authorities say fertiliser supply to farmers will remain stable.
Ensuring Stability for Farmers
With the Kharif season approaching, the government’s priority is to ensure that farmers do not face any shortage of fertilisers.
By securing natural gas supply for fertiliser plants and maintaining strong reserves, the government aims to keep agricultural production stable and protect farmers from global supply shocks.
