West Asia tensions: Urea and Phosphatic supply adequate for Kharif season, assures Fertiliser Association of India (FAI)

While significant challenges are emerging due to global developments, including geopolitical tensions in West Asia, leading to concerns about potential disruptions to fertiliser trade and logistics, current inventory levels and supply arrangements are expected to provide a sufficient cushion to meet agricultural demand, as reported by the news agency ANI.

The fertiliser body said that the industry is working closely with the central government, state governments and other stakeholders to ensure smooth distribution of fertilisers across regions. Production planning, imports and logistics are being actively coordinated to maintain adequate availability during the upcoming cropping season.

India is entering its agricultural lean season, with the primary Kharif sowing window slated to open in June. This period of moderate fertiliser consumption provides a strategic window for the industry to restock inventories and perform essential maintenance at production plants.

Production and inventory details

In the first ten months of the current fiscal year (FY25-26), India’s total production and imports of fertiliser, comprising Urea, DAP, Complex, SSP, and MOP, climbed to 65 million tons, up from 57 million tons during the same period last year.

Fuelled by steady domestic production of Urea, DAP and NPKs and well-timed imports, India maintains a robust stockpile of essential nutrients. Notably, DAP and NPK inventories have surged by 70–80 per cent compared to the same time last year, providing a substantial buffer against potential supply chain fluctuations in the Middle East.

Natural gas and urea production

The fertiliser sector remains heavily reliant on Imported Regasified Liquefied Natural Gas (RLNG) for urea manufacturing. While recent geopolitical tensions have strained significant gas supplies from the Middle East, the industry is collaborating with the government to prioritise gas allocation for Urea production. With some plants under annual maintenance, the industry is optimising gas allocation to ensure a sufficient supply of Urea for the ensuing season.

Strategic diversification for Phosphatic fertilizers

For Phosphatic fertilizers, India has diversified supplies and long-term arrangements, and is sourcing from nations such as Morocco, Jordan, Saudi Arabia, Russia and Belarus, which partially offsets supply disruption risks from one region.

Resilience and subsidy support

Major Indian fertiliser companies like UPL, Coromandel, and PPL have long-term supply arrangements with global producers. These companies often secure annual or multi-year contracts for phosphoric acid, ammonia, and rock phosphate, which can help stabilize supplies in the short term. Despite this, the current geopolitical disturbances can impact prices of these key raw materials like Sulphur and Ammonia, and industry is working closely with the Government for ensuring that Nutrient Based Subsidy (NBS) rates for the Kharif season adequately factors spurt in raw material prices and exchange rate.