New Delhi: India is likely to cut liquefied natural gas (LNG) supply by as much as 40% to urea producers in the coming weeks, said fertiliser companies, reflecting a severe disruption in gas imports from its largest supplier, Qatar, due to the West Asia conflict.
The government move is threatening to curtail supply of a key input for urea manufacturing, disrupting overall fertiliser availability ahead of the crucial kharif or monsoon planting season.
The kharif season is the largest planting season, accounting for more than half of India's foodgrain production. Several staple crops such as oilseeds, pulses, rice, cotton, maize, and sugarcane are sown during the season, making it vital for food inflation. "We have been told by the government that supply of LNG will be cut down by 40%," said an executive at a fertiliser manufacturer, adding this would impact production of the key soil nutrients, directly affecting yield in the coming sowing season.
Fertiliser companies produce about 2.5 million tonnes every per month.
Assuming it lasts about 30 days, the gas supply cut will result in loss of production of about 1 million tonnes, the executive said, urging the government to explore short and medium-term routes to shore up natural gas supply.
While the kharif season starts in June, production and stocking for the same happens in March to enable smooth distribution. Most companies produce during March to meet the expected high demand. However, a reduction in LNG supplies will hit production hard. "Since fertiliser plants cannot be operated below a certain capacity, any reduction of supply of natural gas below the required quantity may lead to stoppage of some plants," said a person aware of the matter.
India's top gas importer Petronet LNG has invoked force majeure serving notices to local buyers like GAIL and Indian Oil Corp on supply reduction due to vessel movement constraints following the escalating conflict.
Petronet LNG's tankers were unable to reach the LNG loading terminal at Ras Laffan in Qatar. US and Israel's air strikes on Iran have disrupted fuel shipments in the region, affecting India's top supplier Qatar. India imported 27 million tonnes of LNG in FY25, about half of its overall gas consumption, according to government data.
Urea production is heavily reliant on imported LNG, and a sustained shortage would force plants to idle, tightening supplies just as farmers prepare for the coming summer crop cycle, followed by the kharif or monsoon crop season.
India imports nearly its entire requirement of muriate of potash and up to 60% in case of di-ammonium phosphate (DAP) besides being totally dependent on LNG imports.
Despite record domestic urea output, India imported 8 million tonnes of the commodity during April-December 2025, or 85% more year-on-year, according to the Fertiliser Association of India. It also imported 5 million tonnes of DAP during the first nine months of the fiscal, up 46% year-on-year.
West Asia, including countries like Saudi Arabia, Qatar, Oman, and the UAE, is home to key suppliers of urea, sulphur, and ammonia.
