India Enhances Fertilizer Preparedness Amid Global Supply Challenges

Written by: Sachin GuptaUpdated on: 20 Mar 2026, 4:15 pm IST
Domestic urea production is projected to rise significantly, from around 54,500 MT per day to nearly 67,000 MT per day, also marking an increase of close to 23%.
fertiliser
ShareShare on 1Share on 2Share on 3Share on 4Share on 5

Amid evolving geopolitical developments in West Asia, the Government of India has implemented a comprehensive and forward-looking strategy to ensure adequate fertilizer availability ahead of the Kharif 2026 season. By combining increased domestic production with a well-calibrated global procurement approach, the Department of Fertilizers has taken decisive steps to shield Indian farmers from disruptions in international supply chains.

Strengthening Gas Supply through Global Tendering

A key component of this strategy has been the successful conclusion of natural gas procurement under the EPMC (Empowered Pool Management Committee) framework. This initiative has directly boosted urea production capacity across the country.

Through spot procurement, an additional 7.31 MMSCMD of natural gas has been secured, raising total gas supply to urea plants from 32 MMSCMD to 39.31 MMSCMD, an increase of approximately 23%.

This intervention is expected to deliver immediate gains. Domestic urea production is projected to rise significantly, from around 54,500 MT per day to nearly 67,000 MT per day, also marking an increase of close to 23%. Importantly, gas supply now meets about 76% of the plants’ average requirements, a notable improvement from the earlier 62%.

Also Read: Oil Prices Drop 2% as U.S. Weighs Easing Iran Sanctions

Strong and Reassuring Stock Position

The government’s proactive measures are also reflected in the current fertilizer stock levels, which are considerably stronger than those recorded during the same period last year. Urea stocks have reached 61.14 LMT, up from 55.22 LMT in March 2025.

Even more striking is the sharp rise in DAP stocks, which have more than doubled to 24.24 LMT. This substantial increase provides a robust buffer, ensuring preparedness for the upcoming sowing season and reinforcing supply security for farmers across the country.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks. Read all related documents carefully before investing.

Published on: Mar 20, 2026, 10:43 AM IST

Sachin Gupta

Sachin Gupta is a Content Writer with 6+ years of experience in the stock market, including global markets like the US, Canada, and Australia. At Angel One, Sachin specialises in creating financial content that simplifies complex market trends. Sachin holds a Master's in Commerce, specialising in Economics.

Know More

We're Live on WhatsApp! Join our channel for market insights & updates

Open Free Demat Account!

Join our 3.5 Cr+ happy customers

+91
Enjoy Zero Brokerage on Equity Delivery
4.4 Cr+DOWNLOADS
Enjoy ₹0 Account Opening Charges

Get the link to download the App

Get it on Google PlayDownload on the App Store
Open Free Demat Account!
Join our 3.5 Cr+ happy customers