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India Boosts Urea Output Amid Supply Fears
15 May
Summary
- India's urea production capacity is 1.5 lakh tonnes, far below the 6 lakh tonnes needed.
- Disruptions in West Asia are impacting imports, prompting domestic production efforts.
- Technical-grade urea is crucial for diesel exhaust fluid and industrial applications.
India is set to enhance its domestic production of technical-grade urea (TGU), a critical component for diesel exhaust fluid (Adblue). The nation's current annual manufacturing capacity of TGU stands at 1.5 lakh tonnes, significantly short of the automotive industry's requirement of 6 lakh tonnes. The deficit is currently met through imports, primarily from the Gulf region.
Amid ongoing supply chain disruptions stemming from the West Asia conflict, India is exploring ways to bolster TGU production. Gujarat State Fertilizers and Chemicals (GSFC) is reportedly being considered to expand its manufacturing capabilities. While urea for agriculture and technical-grade urea are chemically identical, TGU is a purified form with industrial applications in adhesives, dyes, pigments, and cosmetics.
Discussions involving the ministries of chemical and fertilizers and heavy industries began after the Society of Indian Automobile Manufacturers (Siam) requested increased TGU output. While Gujarat Narmada Valley Fertilizers and Chemicals (GNFC) is known as the sole producer for Adblue, its parent company GSFC also possesses production capacity and is being eyed as an additional source. Increasing local manufacturing would reduce the auto sector's dependence on imports, though quality control will be paramount.
