India Boosts Urea Production Amidst West Asia Crisis

Fertiliser companies in India have increased their natural gas procurement from the spot market to enhance urea production, battling a fuel shortage aggravated by the West Asia conflict. This move elevates urea plant operations from 62% to nearly 80% capacity, addressing the domestic demand-supply gap.

In response to a fuel shortage exacerbated by the West Asia crisis, Indian fertiliser companies have secured additional natural gas from the spot market. This purchase aims to bolster urea production, as plants struggled to operate at full capacity, managing only 62% due to insufficient gas supply.

With the newly acquired gas stocks, urea production facilities are now expected to reach 78-80% of their installed capabilities. This is a significant increase from the prior operational level, which was impacted by a deficit in natural gas delivery, crucial for maintaining production momentum.

The strategic measures by the government and fertiliser firms are anticipated to mitigate the current shortfall in urea supply, ensuring essential farm inputs are readily available ahead of the upcoming kharif season. This comes amidst heightened geopolitical tensions and preemptive maintenance schedules.

(With inputs from agencies.)