30% cut in natural gas supply to fertilizer firms may affect urea output

The Indian government on Tuesday informed Parliament that sale of urea in the current rabi season (October-March) was 186.33 lakh tonnes (lt) as of March 5 against the demand estimate of 183.51 lt for the same period, leaving a stock of 49.01 lt. Since the government has announced 30 per cent cut in supply of natural gas, the key feedstock to produce urea, it is feared that the opening stock of the nitrogen fertilizer on April 1 may be low, unless supplemented by imported fertilisers.

The demand estimate of urea for the entire March is 14.95 lt, against which the government said that the stock was 61.51 lt as of March 10, against 50.90 lt a year ago. It had also said that urea stock was 59.30 lt as of March 6.

To maintain a continuous supply of all categories of subsidised fertilizers, the Department of Fertilizers said that it has already managed essential shipments. As of February 2026, the government imported 98 lt of urea, with an additional 17 lt scheduled in the pipeline over the next three months. This proactive approach serves as a testament to the government’s commitment to protecting the interests of the farming community amidst global turmoil, it said.

2nd priority

In March 2025, the domestic production of urea was 24.78 lt and after the announcement of 70 per cent supply of gas, the production is likely to be lower and it may drop to as low as 18 lt, said an industry expert.

The Ministry of Petroleum and Natural Gas on March 9 issued an Order under the Essential Commodities Act “to regulate production, sector-wise allocation and diversion of natural gas supplies, distribution, disposal, acquisition, use or consumption of natural gas, including LNG and re-gassified-LNG.”

Under the Order, fertilizer sector will be second priority in allocation of gas after LPG and PNG (for cooking purpose) and CNG (for transport).

“The supply of natural gas to the fertilizer plants shall ensure 70 per cent of their past six month average gas consumption, subject to operational availability, provided that the units shall not use the gas supply for any other purpose except in the production of fertilizers and a certificate to this effect shall be furnished to the Petroleum Planning and Analysis Cell through the Ministry of Fertilizer. Allocation to a particular unit may not be diverted to any other unit,” the Order said.

Ample availability

In reply to a question in the Rajya Sabha, Chemicals & Fertilizers Minister Jagat Prakash Nadda said that the situation in di ammonium phosphate (DAP), muriate of potash (MOP) and complex (combination of N, P, K nutrients) is better due to lower sales than demand.

Sales of DAP were 50.28 lt against the demand estimate of 51.38 lt during October 1 2025-March 5 2026, leaving a stock of 21.61 lt. Similarly, sales of MOP were 10.18 lt against 14.18 lt demand and those of complex were 62.90 lt against 76.48 lt demand. The stock of MOP was 8 lt and complex 45.51 lt as of March 5.

The government said that the availability of urea, DAP, MOP and complex remained adequate to meet agricultural demand during the ongoing Rabi 2025–26 season, from 01 October 2025 to 05 March 2026, and the country continues to maintain a comfortable stock position.

The Centre also said that while the Department of Fertilizers ensures availability at the State level, distribution of the crop nutrients within the state is managed by the respective State governments.

Published on March 10, 2026