The government has placed the fertilizer sector on its priority list for natural gas supply under the newly issued Natural Gas Supply Regulation Order 2026, a move aimed at safeguarding fertilizer production and ensuring uninterrupted supply to farmers ahead of the upcoming Kharif sowing season.
Under the new regulation, fertilizer plants have been categorized under Priority Sector 2 for natural gas allocation. The policy mandates that fertilizer units will receive at least 70 percent of their average natural gas consumption based on their usage over the previous six months.
The measure has been introduced to protect domestic fertilizer production from global supply disruptions, particularly the liquefied natural gas supply challenges arising from the ongoing conflict in the Middle East. Officials said prioritising natural gas supply to fertilizer plants will help ensure that agricultural activities continue without interruption despite volatility in global energy markets.
The decision is expected to support continuous operations at fertilizer manufacturing plants and guarantee timely availability of fertilizers to farmers across the country.
A high level meeting was convened at the Department of Fertilizers on Tuesday to review preparedness and coordinate with industry stakeholders. Senior officials from fertilizer companies attended the meeting and presented updates on their operational readiness and challenges.
Officials from the Ministry of Petroleum and Natural Gas also participated in the meeting, where companies were informed that all possible steps are being taken to ensure uninterrupted functioning of fertilizer plants despite global supply uncertainties.
Alongside the policy measures on gas allocation, the government has also reported strong fertilizer stock levels ahead of the Kharif agricultural season.
According to the Department of Fertilizers, India’s total fertilizer reserves stood at 180.12 lakh metric tons as of 10 March 2026. This represents an increase of 36.6 percent compared with 131.79 lakh metric tons recorded on the same date last year.
The increase in reserves has been driven primarily by higher availability of key nutrients including diammonium phosphate and NPK fertilizers. Current stock levels include 61.51 lakh metric tons of urea, 25.17 lakh metric tons of DAP, 56.30 lakh metric tons of NPK fertilizers, 12.90 lakh metric tons of MOP and 24.24 lakh metric tons of SSP.
Officials said the availability of urea, the most widely used fertilizer in the country, has increased significantly from 50.90 lakh metric tons last year to 61.51 lakh metric tons this year.
The Department of Fertilizers stated that proactive advance stocking during periods of low consumption has helped build a substantial buffer inventory that will help shield the domestic market from global supply chain shocks.
To maintain steady supplies of subsidised fertilizers, the government has also ensured adequate import arrangements. As of February 2026, India has imported 98 lakh metric tons of urea, with an additional 17 lakh metric tons expected to arrive over the next three months.
Officials said the combined strategy of prioritising natural gas supply for fertilizer production, maintaining high domestic inventories and securing import shipments is intended to ensure uninterrupted fertilizer availability for farmers during the upcoming agricultural season.
