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Govt Boosts Gas Allocation to Fertiliser Units to 90% Ahead of Kharif
India restores gas supply to fertiliser units
- The government has increased natural gas supply to fertiliser plants to ~90% of their requirement, up from 70–80% earlier, ahead of the critical kharif season.
- Earlier, gas supply had dropped to ~60% due to disruptions caused by the West Asia conflict, which impacted energy flows from Gulf nations.
- The increase to 90% has been enabled through spot LNG purchases and sourcing from alternate suppliers like the US, Australia, and Russia, as supplies from Qatar remain suspended.
- The revised supply level is based on six-month average consumption and became effective from April 6.
- Alongside fertilisers, gas allocation to other industrial and commercial sectors (including city gas distribution) has also been increased by ~10%.
- Priority sectors remain protected, with 100% gas supply ensured for domestic PNG (cooking gas) and CNG (transport).
Fertiliser Supply Measures
- State-run Indian Potash Limited (IPL) is planning to import ~2.5 million tonnes of urea to ensure adequate availability.
- A tender has already been issued:
- 1.5 million tonnes via West Coast
- 1 million tonnes via East Coast
- Shipments are expected to begin by mid-June, aligning with the start of kharif sowing.
Demand & Production Context
- Imports are critical as domestic urea production has declined by ~0.6–0.7 million tonnes per month due to earlier gas shortages.
- Fertiliser demand will rise with kharif crops (rice, corn, soybeans), where sowing begins with the monsoon in June.
Overall Takeaway
- The government is stabilising fertiliser supply chains through:
- Higher gas allocation
- Diversified LNG sourcing
- Increased urea imports
- Objective: Avoid fertiliser shortages and ensure smooth kharif sowing despite global energy disruptions.
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