Major Decision by the Government of India in the Interest of Farmers

**Executive Summary** The Government of India has issued the Natural Gas (Supply Regulation) Order, 2026, designating fertilizer plants as 'Priority Sector-2' for natural gas supply. This order aims to ensure domestic fertilizer production remains unaffected by global supply chain disruptions, particularly concerning the Kharif season. Key actions include securing at least 70% of average natural gas consumption for fertilizer plants, with a high-level meeting on March 9, 2026, emphasizing continuous plant operations. **Key Points / Main Content** **Natural Gas (Supply Regulation) Order, 2026** * **Priority Sector Designation:** Fertilizer plants are categorized under 'Priority Sector-2' for natural gas supply. * **Supply Guarantee:** Fertilizer plants will receive at least 70% of their average natural gas consumption from the last six months, subject to operational availability. * **Purpose:** To safeguard fertilizer production against global supply chain disruptions, especially those related to LNG due to Middle East conflict, ensuring timely fertilizer availability for farmers. * **Gazette Notification:** The order was officially published and came into effect upon its publication in the Official Gazette. **High-Level Meeting and Industry Mobilization** * **Meeting Date:** A high-level meeting was held on a Tuesday prior to March 10, 2026, in the Department of Fertilizers. * **Attendees:** High-ranking officials from fertilizer companies and senior officials from the Ministry of Petroleum and Natural Gas participated. * **Objective:** To discuss preparations and challenges related to natural gas supply and to ensure continuous operation of fertilizer plants. **Fertilizer Stock and Reserves** * **Total Reserve:** India's total fertilizer reserve reached 180.12 Lakh Metric Tons (LMT) as of March 10, 2026, ahead of the Kharif season. * **Year-on-Year Increase:** This represents a 36.6% increase compared to 131.79 LMT on the same date in 2025. * **Key Nutrients:** The surge is driven by increases in critical soil nutrients, specifically DAP (25.17 LMT) and NPKS (56.30 LMT). * **Urea Availability:** Urea, the most consumed fertilizer, has a stock of 61.51 LMT, indicating insulation from global supply chain shocks for the upcoming Kharif sowing. * **Imported Urea:** As of February 2026, 98 LMT of Urea was imported, with an additional 17 LMT scheduled. **Impact Analysis** **Fertilizer Plants** * **Impact:** Guaranteed supply of at least 70% of their average natural gas consumption, subject to operational availability. This will help maintain continuous production and safeguard against global supply chain issues. * **Action Required:** Utilize the gas supply strictly for fertilizer production and furnish a certificate to the Petroleum Planning and Analysis Cell (PPAC) through the Ministry of Fertilizer. Ensure that allocated gas is not diverted to any other unit. **Farmers** * **Impact:** Assurance of timely availability of fertilizers for agricultural activities, enabling smooth continuation of farming despite global gas crises and potential logistical bottlenecks. * **Action Required:** No direct action is specified for farmers; the government's measures are intended to benefit them. **Government of India (Ministry of Chemicals and Fertilizers, Ministry of Petroleum and Natural Gas)** * **Impact:** Increased responsibility to ensure the implementation of the Natural Gas (Supply Regulation) Order, 2026, and to coordinate with industry stakeholders. * **Action Required:** Ensure continuous operation of fertilizer plants, manage essential shipments of fertilizers, and coordinate gas allocation and supply through mechanisms like PPAC and GAIL. **Gas Marketing Entities and Other Industrial Consumers** * **Impact:** Gas supply will be maintained at 80% of their past six months' average gas consumption, subject to operational availability, and may be curtailed to fulfill higher priority allocations. * **Action Required:** Ensure gas supply to tea industries, manufacturing, and other industrial consumers through the national gas grid is maintained at 80% of their average consumption. Implement instructions for supply adjustments and sector-wise allocation as directed by the Central Government. **Petrochemical Facilities and Power Plants** * **Impact:** These sectors are designated for gas curtailment to meet the priority demands of fertilizer production and other priority sectors. * **Action Required:** Absorb gas supply reductions as per the prescribed priorities to ensure the availability of gas for Priority Sectors I and II. **Oil Refining Companies** * **Impact:** May need to reduce gas allocation to refineries to approximately 65% of their past six months' gas consumption to absorb the impact of LNG supply disruptions. * **Action Required:** Absorb the impact of LNG supply disruption to the extent feasible by reducing gas allocation to refineries, subject to operational feasibility.

Key Entities Referenced