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India Orders 2.5 Million Tonnes of Urea and Lifts Gas Supply to Avert Pre-Monsoon Shortfall

Middle East conflict has crimped LNG flows, tightening fertilizer supplies.

A mixture of urea and potash fertilizer. | Photographer: Rory Doyle/Bloomberg
Indian Farmers use nitrogen ruthlessly leading to more dependency, the usage of nitrogen at a scientific proportion can ease the higher dependency. (Image: PTI)
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Overview

  • Fertilizer plants received about 90% of their average gas supply on Monday after an oil ministry order, up from 70–75%, to keep urea output running.
  • Indian Potash Ltd opened a 2.5 million tonne urea tender with bids due April 15 and shipments to load by June 14 to stock up for the Kharif sowing window.
  • The tender assigns 1.5 million tonnes to west coast ports and 1 million tonnes to the east coast, according to the company’s notice.
  • Officials link the squeeze to LNG and shipping disruptions through the Strait of Hormuz, which led some South Asian plants to shut last month as India also seeks direct deals with major exporters.
  • Domestic urea output fell to 18 lakh tonnes in March versus a typical 24 lakh, and India’s heavy reliance on Middle East suppliers and high nitrogen use on farms increase vulnerability to supply shocks.