Parliament Question: Impact of Geopolitical Tensions on Fertilizer Imports

GOVERNMENT OF INDIA MINISTRY OF CHEMICALS AND FERTILIZERS DEPARTMENT OF FERTILIZERS LOK SABHA UNSTARRED QUESTION NO. 1085 TO BE ANSWERED ON: 24.07.2026 Impact of Geopolitical Tensions on Fertilizer Imports 1085 Shri Kishori Lal: Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state: (a) whether the conflict in West Asia has disrupted the import of fertilizers, ammonia, phosphoric acid, sulphur, potash and other critical raw materials, if so, the details of the disruptions during last one year; (b) the measures taken to ensure uninterrupted supply of the said commodities; (c) whether the Government has made any assessment and likely impact of shortages of essential chemicals and fertilizers on agricultural production during the current and forthcoming crop seasons and if so, the details thereof; (d) whether adequate buffer stocks of fertilizers have been maintained to meet the requirements of farmers in the event of prolonged disruption in imports due to such geopolitical tensions, if so, the details thereof; and (e) whether the Government has identified any risks to the supply of industrial chemicals used in pharmaceuticals, petrochemicals, water treatment and manufacturing industries due to the conflict, if so, the details thereof and the contingency measures taken to address such risks? ANSWER THE MINISTER IN THE MINISTRY OF CHEMICALS & FERTILIZERS (SHRI JAGAT PRAKASH NADDA) (a): The conflict in West Asia during 2025-26 disrupted global supply chains for fertilizers and key raw materials, leading to higher freight and insurance costs, shipment delays and price volatility. India's imports of ammonia, phosphoric acid and sulphur were particularly affected, while potash imports experienced higher landed costs on account of global logistics disruptions. Despite these disruptions, fertilizer availability in the country remained largely adequate through diversified sourcing and Government interventions. (b): The Government has undertaken sustained efforts to diversify import sources so as to mitigate risks arising from global supply chain disruptions. The measures taken include:-2- i. Facilitating long-term commercial arrangements between Indian fertilizer companies and overseas suppliers to strengthen fertilizer supply security. ii. Engaging with Indian Missions abroad to identify and explore alternative sources of supply from various countries, thereby reducing dependence on a limited number of suppliers and strengthening the resilience of the fertilizer supply chain. iii. Collective procurement of fertilizers and raw materials like ammonia and sulphur, by the fertilizer industry through a consortium of industry members, with the objective of ensuring transparent price discovery, improving bargaining power with global suppliers, and securing timely availability of raw materials. (c) to (e): The Government undertakes the following steps every season to ensure timely and adequate supply of fertilizers in the country, which also enable assessment of likely impact on agricultural production and maintenance of adequate stocks: i. Before the commencement of each cropping season, the Department of Agriculture and Farmers Welfare (DA&FW), in consultation with all State Governments, assesses the State-wise and month-wise requirement of fertilizers. ii. On the basis of the requirement projected by DA&FW, the Department of Fertilizers allocates adequate quantities of fertilizers to States by issuing a monthly supply plan and continuously monitors availability. iii. The movement of all major subsidized fertilizers is monitored throughout the country through an online web-based monitoring system called the Integrated Fertilizer Management System (iFMS). iv. Regular weekly Video Conferences are conducted jointly by DA&FW and the Department of Fertilizers with State Agriculture Officials, and corrective actions are taken to dispatch fertilizers as indicated by the State Governments. v. The distribution of fertilizers within the State is undertaken by the respective State Government. As a result of these measures, the availability of fertilizers, i.e., Urea, DAP, MOP and NPKS, has remained adequate in the country during the last one year (FY 2025-26) and in the ongoing Kharif 2026 season. The information regarding requirement, availability, sales and closing stocks of these fertilizers during these periods is placed at the Annexure. Further, in respect of Phosphatic and Potassic (P&K) fertilizers, the Government has implemented the Nutrient Based Subsidy (NBS) Scheme with effect from 01.04.2010. Under the Scheme, P&K fertilizers are covered under Open General License (OGL), and companies are free to import/manufacture these fertilizers as per their business dynamics, which provides flexibility to maintain adequate supplies. The Government identified certain supply chain risks arising from the ongoing conflict in West Asia, particularly with regard to industrial chemicals and feedstocks used in pharmaceutical manufacturing. These include temporary shortage and price increase of inputs such as Isopropyl Alcohol (IPA), Ammonia and Methanol. To-3- mitigate these risks and ensure continuity of pharmaceutical production, the Government has undertaken several contingency measures. These include facilitating allocation of propylene to improve the availability of Isopropyl Alcohol (IPA) and Propylene Glycol in coordination with Ministry of Petroleum and Natural Gas, facilitation of supply of surplus ammonia to pharmaceutical industries and securing improved methanol supply through existing traders and augmenting supply alternatives in coordination with domestic manufacturers. The Government continuously monitors the availability and supply chain of industrial chemicals used across critical downstream sectors, including pharmaceuticals, petrochemicals, water treatment and manufacturing industries. In view of the evolving geopolitical situation arising from the West Asia crisis, to ensure continuous supply Customs Duty on 40 essential Chemicals and Petrochemicals having widespread downstream applications, has been reduced to zero till 15th July 2026.The Government has also taken measures for suspension of Quality Control Orders (QCOs) on Linear Alkyl Benzene (LAB), Butyl Acrylate and Morpholine by the Department of Chemicals and Petrochemicals to diversify sources of imports of critical chemicals. *****-4- ANNEXURE Annexure referred to in reply to parts (c) to (e) of Lok Sabha Unstarred Question No.1085 for answering on 24.07.2026 ALL INDIA FERTILIZERS DURING THE ONGOING KHARIF 2026 (FROM 01.04.26 TO 19.07.26) fig. in LMT Closing DBT Stock as S.No PRODUCT Requirement Availability Sales on 19.07.26 1 UREA 109.40 163.78 94.78 69.01 2 DAP 31.57 39.54 22.82 16.72 3 MOP 10.06 13.81 5.20 8.63 4 NPKS 48.48 84.57 39.36 45.21 FERTILIZERS DURING THE FY 2025-26 Closing DBT Stock as S.No PRODUCT Requirement Availability Sales on 31.03.26 1 UREA 381.45 450.79 396.60 54.22 2 DAP 110.42 121.72 100.80 20.93 3 MOP 26.82 30.58 22.56 8.01 4 NPKS 158.49 198.97 150.37 48.59 1. Primary Indicator of comfortable availability: Availability > Requirement 2. Secondary Indicator of comfortable availability: Availability > Sales