New Delhi, March 14 India has expedited fertiliser imports to ensure supplies for the monsoon planting season, as the crisis in the Middle East disrupts gas shipments and shipping routes, government sources said on Saturday.
India has fast-tracked a global tender for urea imports and ordered 1.35 million tonnes of fertiliser by mid-February. Sources said that approximately 90 per cent of this order is expected to arrive by the end of March.
Urea, India's most consumed and heavily subsidized fertiliser, is produced domestically at around 30-31 million tonnes annually, with imports of 6-10 million tonnes bridging demand shortfalls. Production is heavily dependent on natural gas.
India also imports phosphate-based fertilizers, including Di-Ammonium Phosphate (DAP) and NPK compounds.
A five-year supply contract with Saudi Arabia for 3 million tonnes of DAP remains intact, with "no force majeure," the sources said.
Supplies of urea, DAP, and NPK from Russia and Morocco are flowing uninterrupted via the Cape of Good Hope route.
Spot purchases of gas have been approved through EPMC and GAIL, with the first phase of procurement set for completion by Tuesday (March 17).
As of March 13, urea stocks stood at around 6.2 million tonnes, approximately 1 million tonnes above the year-ago level. DAP stocks nearly doubled to 2.5 million tonnes, while NPK at 5.6 million tonnes hit a record high.
"Comfortable fertiliser stocks are expected before peak monsoon demand on May 15," the sources said, adding that the government was monitoring market discipline and flagging abnormal sales patterns across 652 districts.
With the winter harvest season concluded and April typically a lean demand month, fertilizer demand is expected to pick up from May, subject to a normal and timely monsoon.
Average domestic urea output runs at about 25 lakh tonnes per month, though March production is forecast at 17 lakh tonnes as manufacturers advance annual maintenance to optimize gas consumption.
The government has guaranteed at least 70 per cent of the natural gas supply to the fertilizer sector, based on average consumption over the past six months.