India urea production may face pressure after the government reduced natural gas supply for industrial use. Several fertilizer plants are currently receiving only 30–50% of their gas requirement, according to industry sources.
Many fertilizer companies have reportedly advanced their annual maintenance schedules and temporarily shut some plants due to limited gas availability.
An official from Indian Farmers Fertiliser Cooperative Limited (IFFCO) said overall production may not be affected if gas supply normalises by April. The company had originally planned maintenance shutdowns during that period.
India Urea Production Depends on Gas-Based Plants
India currently has 32 operational urea manufacturing plants. Out of these, 31 plants use natural gas as feedstock, while only one plant uses the coal gasification route to produce nitrogen fertilizers.
Sources in the fertilizer industry said that most gas-based urea plants depend heavily on imported LNG, making them sensitive to supply disruptions.
The government has reportedly advised fertilizer companies not to publicly highlight the gas shortage issue.
FACT Assures Supply Stability
According to Fertilisers and Chemicals Travancore Limited (FACT), the company currently has sufficient raw material stocks to maintain production.
FACT’s Chairman and Managing Director S Sakthimani said the company uses three key inputs:
Rock phosphate
Sulphur
Regasified liquefied natural gas (RLNG)
The company has secured rock phosphate supplies from Togo and holds enough stock for the next three months. Meanwhile, Bharat Petroleum Corporation Limited (BPCL) has assured adequate sulphur supply.
However, RLNG supply has been moderated due to prioritisation of gas to other sectors.
FACT currently holds around 1.4 lakh tonnes of fertilizer inventory, which is expected to meet market demand when the next fertilizer season begins in June–July.
GNFC Faces RLNG Supply Constraints
Officials from Gujarat Narmada Valley Fertilizers & Chemicals (GNFC) said the company relies heavily on natural gas for ammonia production. Natural gas accounts for around 60% of its total ammonia output.
Earlier this month, GNFC reported that RLNG supply constraints from GAIL (India) Limited followed a force majeure notice issued by Petronet LNG Limited.
The company indicated that production of neem-coated urea could be affected, though other product lines remain largely unaffected.
Officials of Gujarat State Fertilizers & Chemicals Limited (GSFC) declined to comment on whether the situation at the Strait of Hormuz could impact natural gas availability.
Fertilizer Stocks Remain Comfortable
Despite supply concerns, fertilizer inventories remain adequate ahead of the upcoming kharif season.
As of February:
Urea stock: 5.5 million tonnes (4.9 mt last year)
DAP stock: 2.5 million tonnes (1.3 mt last year)
Muriate of potash (MOP): 1.29 mt (1.5 mt last year)
India’s total annual fertilizer consumption is around 65 million tonnes. Urea accounts for nearly 40 million tonnes, while DAP demand is around 10 million tonnes.
Industry officials believe fertilizer supply may remain stable if gas availability improves before the peak agricultural season begins.
