India's Urea Crisis: Production Plummets Amidst Global Conflict

India's domestic urea production has experienced a sharp decrease, falling to approximately 18 lakh tonnes this month from a typical average of 24 lakh tonnes. This reduction is primarily attributed to supply-side constraints in gas availability and the scheduling of plant maintenance, exacerbated by disruptions linked to the West Asia conflict.

To counter this, the government is actively working to stabilize supplies. Measures include increasing liquefied natural gas (LNG) procurement through spot buying arrangements and advancing annual maintenance schedules for some plants. Authorities are also diversifying import sources, exploring global tenders and long-term supply agreements with various countries.

Despite production challenges, officials maintain that fertiliser stocks are currently sufficient. As of this report, 180 lakh tonnes of soil nutrients are available, representing a 22% increase compared to the same period last year. The government is also monitoring sales to prevent hoarding and reassure farmers of adequate soil nutrient availability at prevailing prices.