India’s Fertiliser Supply Amid West Asia War

Context

India was able to bypass impending global crises in fertiliser supplies during the West Asia conflict by proactively diversifying its imports, but there was some concern in the case of phosphatic fertilisers such as DAP and complex fertilisers.

Key Highlights

• The war in West Asia had a significant impact on the global energy and fertiliser supply chains, particularly due to the impact on shipping through the Strait of Hormuz.
• The 2026 kharif season had the possibility of a shortage in India, which is heavily reliant on imported Liquefied Natural Gas (LNG) and fertiliser raw materials.
• The availability of urea, however, remains satisfactory thanks to timely government intervention, while Di-Ammonium Phosphate (DAP) and complex fertilisers are still under pressure.

How Did India Prevent a Major Fertiliser Shortage?

• Diversification of LNG Imports

  • When supply was cut, India soon stopped relying on Qatar and UAE.
  • LNG was sourced from public sector companies that are:
    • United States
    • Oman
    • Nigeria
    • Angola
    • Indonesia
    • Norway
    • Trinidad & Tobago
  • This meant that there was no interruption in the supply of natural gas to the plants for urea plants.

• Higher Urea Imports

  • Multiple tenders were floated by the government for importing more urea from overseas.
  • The imports of urea during April-June 2026 rose considerably compared to the same period in 2025.
  • The government faced the increased import cost by boosting the subsidies for fertiliser instead of imposing it on the farmer.

Why Is Urea Supply Comfortable?

• Urea production bounced back from short-term interruptions in domestic urea production.
• Production was also higher in kharif due to good availability of LNG.
• Domestic production was complemented by increased imports.
• With better supply management, there was no panic buying and shortages.

Why Are DAP and Complex Fertilisers Still a Concern?

• Rising Input Costs

  • Geopolitical disturbances have caused a significant increase in the price of phosphoric acid, sulphur and ammonia.
  • The price of sulphur has gone up multiple times from the normal price due to:
    • Lowering the export volume from Russia.
    • Disruptions in supplies from West Asian producers.
    • Continued shipping constraints.

• Declining Production

  • Domestic production of:
    • DAP
    • Complex fertilisers (NPK)
    • Single Super Phosphate (SSP)
  • There has been a decrease in the number of them compared to last year.

• Import Challenges

  • The case of phosphatic fertiliser raw materials cannot be said to be worked out with diversification of imports in India as in the case of urea.
  • International prices have been high and have deterred new import contracts.

Role of Monsoon

• Demand for fertiliser has been relatively low as a result of:
• Below-normal monsoon rainfall.
• Reduced sown area of kharif crops.
• A decrease in farmers’ use of fertilizers.
• This has helped to avoid shortages in spite of limited supplies.

Challenges Ahead

• Geopolitical tensions could continue to push fertiliser input prices up.
• India’s high import reliance makes it vulnerable to the global supply shock.
• An increase in the amount of subsidies might place a burden on government finances.
• Shortfall in availability of phosphatic fertilisers before the rabi season continues to be a major concern.

Way Forward

• Support diversification of sources of phosphatic fertiliser raw materials.
• Encourage the domestic manufacturing of fertilisers as a part of Atmanirbhar Bharat.
• Promote fair use of fertilisers by implementing nutrient-based subsidy reforms.
• Develop alternative nutrient sources and green ammonia technologies.
• Build strategic stocks and supply-chain robustness of key agricultural inputs.

Source: The Indian Express

Prelims PYQ

Q. With reference to chemical fertilizers in India, consider the following statements: (2020)

1. At present, the retail price of chemical fertilizers is market-driven and not administered by the Government. 
2. Ammonia, which is an input of urea, is produced from natural gas. 
3. Sulphur, which is a raw material for phosphoric acid fertilizer, is a by-product of oil refineries. 

Which of the statements given above is/are correct? 

(a) 1 only
(b) 2 and 3 only
(c) 2 only
(d) 1, 2 and 3

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