Fertilisers at Risk: FAI Appeals for Government Relief Amid Gas Supply Crisis

The Fertiliser Association of India (FAI) has called on the government for financial relief for urea producers facing gas supply disruptions. This could lead to fertiliser shortages ahead of the kharif season. Other challenges include a shortage of bagging materials, threatening the smooth dispatch of fertilisers.

The Fertiliser Association of India (FAI) has urged the government to offer financial relief to urea producers affected by gas supply disruptions. This situation threatens to disrupt fertiliser supplies crucial for the upcoming kharif season.

FAI has sent a letter to the government requesting reimbursements for energy costs and penalty waivers. The organisation highlighted the extraordinary conditions caused by ongoing geopolitical tensions. Under the Natural Gas Supply Regulation notified in March 2026, fertiliser plants receive only 70% of their average gas consumption, impacting production under various policies.

In addition, FAI has raised concerns over the shortage of bagging materials, with suppliers curbing output. This squeeze on polypropylene and polyethylene granules could hamper the delivery chain, impeding fertiliser dispatch just as the peak sowing season begins in June.

(With inputs from agencies.)