FAI Confirms Steady Fertiliser Supplies Ensuring Smooth Kharif Season

The Fertiliser Association of India assures sufficient Urea and Phosphatic fertiliser supplies for the upcoming Kharif season, despite global tensions. Coordinated efforts with the government ensure smooth distribution, while increased production and imports provide ample inventory to meet agricultural demands.

The Fertiliser Association of India (FAI) has announced that supplies of Urea and Phosphatic fertilisers are sufficient to cater to the needs of the upcoming Kharif agricultural season. Despite global geopolitical tensions, particularly in West Asia, the industry has built inventory levels that are expected to meet the demand comfortably.

Collaboration is ongoing between the fertiliser industry and various government bodies to ensure efficient distribution across regions. Active coordination of production planning, import schedules, and logistics is in place to maintain a robust supply during the crucial cropping period. The Kharif sowing season, which begins in June, typically witnesses moderate fertiliser use, allowing the replenishment of stock and maintenance at production sites.

India's fertiliser production and imports have surged from 57 million tons last year to 65 million tons projected for FY25-26. This increase in production and timely imports of Urea, DAP, and NPKs ensure that farm-level demands are met without disruption. Inventories of DAP and NPKs have increased by 70-80% year-on-year, mitigating any temporary supply disruptions from the Middle East.

The fertiliser sector's reliance on imported RLNG for Urea production, primarily sourced from the Middle East, is currently facing challenges due to supply disruptions. The industry, in collaboration with the government, is optimizing gas allocations to prioritize Urea production. For Phosphatic fertilisers, India has diversified its supply sources to nations like Morocco and Russia, reducing regional supply risks.

Leading Indian fertiliser companies like IPL and Coromandel have secured long-term contracts for critical raw materials, stabilizing short-term supplies. Although geopolitical factors may influence the pricing of raw materials such as Sulphur and Ammonia, the industry is working with the government to ensure that the Nutrient-based Subsidy rates for the Kharif season account for any price increases and currency fluctuations.

(With inputs from agencies.)