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India's fertiliser output hits 5-year low amid input shortages
21 Apr 2026

India's fertilizer production has plummeted to a five-year low in March, declining by a whopping 24.6% year-on-year.

The sharp decline is mainly due to input shortages caused by the ongoing conflict in West Asia.

The data, released by the Ministry of Commerce and Industry on Monday, shows that if fertilizers were excluded from the core sector index (which has a weightage of just 2.63%), it would have remained flat instead of contracting.

Fertilizer production index stood at 95.7 in March 2026
Production decline

The fertilizer production index stood at 95.7 in March 2026, the lowest since April 2021 when it was at 88.3.

The core sector index, which tracks eight key industries, contracted by 0.4% on an annual basis—the weakest reading since August 2024 when it shrank by 1.5%.

The contraction was mainly driven by four sectors: fertilizers, crude oil, coal and electricity.

India imports 27% of its total fertilizer consumption
Supply challenges

For a disruption-free new cropping season, India would need either an easing of the supply-chain crisis or imported fertilizer supplies to make up for the loss in domestic production.

According to data from the latest Economic Survey, India imports some 27% of its total fertilizer consumption.

Natural gas supplies to fertilizer plants increased
Supply restoration

Natural gas supplies to fertilizer plants have already been increased from 90% to 95% of their requirement.

This is the second increase after an earlier hike from "70% to 90%."

Natural gas serves as both fuel and feedstock for fertilizer plants. Its supply had been curtailed temporarily to ensure uninterrupted PNG (Piped Natural Gas) and CNG (Compressed Natural Gas) supplies for cooking and automobiles.

Other sectors in core sector index also witnessed contraction
Sector performance

Along with fertilizers, other sectors in the core sector index also witnessed a contraction.

Coal production fell by 4%, crude oil output contracted by 5.7%, and electricity generation slipped by 0.5%.

However, steel and cement continued to expand but at a slower pace than February's growth rates of 7.6% for steel and 8.9% for cement production, respectively.