Fertilizer Plants Prioritized for Natural Gas Amid Global Supply Concerns

The government has classified fertilizer plants under 'Priority Sector-2' to ensure 70% of their natural gas needs are met, safeguarding domestic fertilizer production against global supply disruptions. Political instability in West Asia threatens LNG shipments crucial for upcoming Kharif season. India's fertilizer reserves are at record levels.

The government announced the inclusion of fertilizer plants in 'Priority Sector-2' for natural gas supply, ensuring they receive at least 70% of their usual consumption. This move counters potential global supply disruptions due to ongoing conflict in West Asia, particularly affecting LNG supply.

With the Kharif sowing season approaching, political instability in West Asia poses a risk to LNG shipments, which are vital for fertilizer production. A meeting, featuring senior officials from fertilizer companies and the Ministry of Petroleum and Natural Gas, addressed preparedness and flagged challenges.

India's fertilizer reserves have reached a record high of 180.12 lakh tonnes, marking a 36.6% increase from last year. The surge is attributed to significant accumulations in DAP and NPK. Despite maritime transport disruptions, the government assures an uninterrupted domestic supply to farmers thanks to an aggressive advance-stocking strategy.

(With inputs from agencies.)