Gas Supply Cuts Threaten India's Fertiliser Production Amid Geopolitical Tensions

India's fertiliser stockpiles are sufficient for the upcoming kharif season, but potential shortages and rising costs loom due to a 40% gas supply cut and geopolitical tensions. The Fertiliser Association of India emphasizes gas supply concerns and calls for government prioritization to ensure uninterrupted urea production.

India stands prepared with adequate fertiliser reserves for the kharif season despite significant challenges presented by a 40 percent reduction in gas supply and ongoing geopolitical tensions in West Asia, the Fertiliser Association of India (FAI) revealed on Monday.

FAI Director General Chaudhari Suresh Kumar highlighted that while the current stockpile situation appears stable, the sector's chief anxiety revolves around the curtailed gas supply crucial for urea production. The predicament is exacerbated by geopolitical unrest in West Asia, which threatens to further tighten the supply chain and escalate costs.

Efforts are underway to bolster imports and secure long-term agreements with international suppliers to navigate through the supply gaps without jeopardizing domestic production for the approaching rabi season. The government has prioritized gas allocation to the sector, assuring farmers through continued subsidies amid rising global prices.

(With inputs from agencies.)