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A senior authorities official instructed reporters on Monday (31 March 2026) that the spot value for liquefied pure fuel (LNG) provided to the fertilizer trade has been secured at round $19 per million British thermal items (MMBTU).
“Earlier than the struggle, spot costs hovered round $11 per MMBtu,” they stated, including, “For the reason that struggle, now we have been buying LNG for fertilizer items at round $19.”
The federal government has noticed that the worldwide fertilizer market is seeing “speedy will increase” in costs for inputs similar to LNG, ammonia and sulfur, with rising transport and logistics prices as battle continues in West Asia.
At current, India faucets round 30% of its fertilizer trade demand into the spot market.
The present scenario and provide administration measures are additionally impacting home manufacturing of urea.
For reference, India receives about 20-30% of its urea, 30% of its diammonium phosphate (DAP) and nearly half of its pure fuel consumption from the Gulf area. Notably, amid the escalating battle, the Iranian authorities additionally attacked the services of Qatar Vitality, the world’s largest pure fuel importer and India’s fundamental provider.
spur home manufacturing
In accordance with authorities estimates, the whole quantity required for the following kharif sowing season is round 390,000 tonnes. The entire stock quantity reaches roughly 180 million tons. Different measures have now elevated the pure fuel provide to the urea plant to 75-80% of the requirement, rising urea manufacturing by 12,000-15,000 tons per day.
“(This) will scale back month-to-month manufacturing losses from 9-10 LMT to roughly 6-7 LMT,” the federal government introduced.
Notably, based on authorities estimates, India produced 1.8 million tonnes of urea and 90-1 million tonnes of phosphorus and potassium fertilizers in March this 12 months.
As well as, India is forging alliances with Russia, Morocco, Australia, Indonesia, Malaysia, Jordan, Canada, Algeria, Egypt, Finland, and Togo to make sure a steady provide of key uncooked supplies similar to sulfur and LNG.
