India Prioritizes Natural Gas Supply for Fertilizer Plants Amid LNG Supply Concerns; Current Stocks 36.6% Higher Than Last Year
10 March 2026, New Delhi: The Government of India has included the fertilizer sector in its priority list for natural gas supply under the Natural Gas (Supply Regulation) Order, 2026, a move aimed at safeguarding domestic fertilizer production amid global energy supply uncertainties.
Under the order, fertilizer manufacturing plants have been categorized under ‘Priority Sector-2’, ensuring that they receive at least 70 percent of their average natural gas consumption based on the previous six months. The measure is intended to protect fertilizer production from potential disruptions in global liquefied natural gas (LNG) supply, particularly those linked to ongoing geopolitical tensions in the Middle East.
According to the government, the policy is designed to ensure uninterrupted fertilizer availability for farmers during the upcoming Kharif sowing season, even if global energy markets face volatility.
Industry and Government Coordination
A high-level meeting was convened at the Department of Fertilizers to review preparedness and production continuity. Senior officials from fertilizer companies participated in the meeting and presented updates on production capacity, logistical challenges, and supply planning.
Officials from the Ministry of Petroleum and Natural Gas were also present, indicating coordination between the fertilizer and energy sectors to ensure uninterrupted gas supply to fertilizer plants.
Fertilizer Stocks Rise Significantly
The Department of Fertilizers also reported a significant increase in fertilizer inventories ahead of the Kharif season.
As of March 10, 2026, India’s total fertilizer stocks stood at 180.12 lakh metric tonnes (LMT), compared with 131.79 LMT during the same period last year, representing a 36.6 percent increase.
The stock buildup has been supported by advance stocking strategies during periods of relatively lower consumption.
Comparative Fertilizer Stock Status (as of March 10)
| Fertilizer | Stock (2026) LMT | Stock (2025) LMT |
|---|---|---|
| Urea | 61.51 | 50.90 |
| DAP | 25.17 | 11.55 |
| NPK | 56.30 | 32.29 |
| MOP | 12.90 | 14.41 |
| SSP | 24.24 | 22.64 |
| Total | 180.12 | 131.79 |
The increase in inventories is largely attributed to higher availability of DAP and NPK fertilizers, which are critical for balanced crop nutrition.
Imports and Supply Planning
Urea, the most widely used fertilizer in India, recorded an available stock of 61.51 LMT. To maintain supply stability, the government has also continued imports.
By February 2026, India had imported 98 LMT of urea, with an additional 17 LMT expected over the next three months.
Officials said the combined strategy of domestic production, imports, and advance stocking is intended to ensure sufficient fertilizer availability for farmers despite disruptions in international logistics and maritime shipping routes.
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