A 30% reduction in natural gas supply to fertilizer plants could affect domestic urea production in India and potentially lower opening stocks for the upcoming agricultural season, the government informed Parliament on Tuesday.
Natural gas is the primary feedstock used in the production of urea, and reduced supply could constrain output if not offset by imports.
According to government data, urea sales during the current rabi season (October–March) reached 186.33 lakh tonnes (lt) as of March 5, exceeding the estimated demand of 183.51 lt for the same period.
Despite higher sales, the country maintained stocks of 49.01 lt, the government said.
However, industry observers warn that the reduced gas allocation could lower domestic production in the coming months and affect the opening stock position on April 1.
Imports to Support Supply
To ensure uninterrupted fertilizer availability, the government has increased imports.
As of February 2026, India imported 98 lt of urea, with another 17 lt expected to arrive over the next three months, the Department of Fertilizers said.
The government described the imports as part of a proactive strategy to safeguard supplies for farmers amid global uncertainties.
Production Could Decline
Industry experts estimate that urea production could fall due to the reduced gas allocation.
In March 2025, domestic urea production stood at 24.78 lt. With fertilizer plants now receiving 70% of their usual gas supply, output could decline to around 18 lt, according to industry estimates.
The Ministry of Petroleum and Natural Gas issued an order on March 9 under the Essential Commodities Act regulating the allocation and distribution of natural gas across sectors.
Under the new policy, the fertilizer sector has been assigned second priority in gas allocation, after supplies meant for LPG and PNG for cooking and CNG used in transportation.
The order specifies that fertilizer plants must use the allocated gas exclusively for fertilizer production and cannot divert it to other uses.
Other Fertilizers in Comfortable Supply
While concerns remain over urea production, the government said the supply situation for other fertilizers remains stable.
Sales of di-ammonium phosphate (DAP) stood at 50.28 lt against demand of 51.38 lt, leaving a stock of 21.61 lt.
Similarly, muriate of potash (MOP) sales were 10.18 lt compared with demand of 14.18 lt, with stocks of 8 lt remaining.
Sales of complex fertilizers (NPK blends) reached 62.90 lt against demand of 76.48 lt, leaving stocks of 45.51 lt as of March 5.
The government said overall availability of urea, DAP, MOP and complex fertilizers remains adequate to meet agricultural demand during the ongoing rabi 2025–26 season.
While the Department of Fertilizers ensures supply at the national level, distribution within states is managed by respective state governments, the Centre said.
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