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Spot prices of liquified earthy state (LNG), which was provided to the fertiliser industry, were secured astatine astir $19 per metric cardinal British Thermal Unit (MMBTU), a elder authorities authoritative told reporters Monday (March 31, 2026).
“Before the war, the spot prices hovered astir $11/MMBtu,” they stated, adding, “Since the war, we person purchased LNG astatine astir $19 for our fertiliser units.”
According to the government’s observations, the planetary fertiliser markets person had a “sharp increase” successful prices of inputs specified arsenic LNG, ammonia and sulphur, accompanied with a spike successful freight and logistics costs, amidst the ongoing struggle successful West Asia.
At contiguous approximately, India would beryllium tapping into the spot marketplace for 30% of the fertiliser industry’s requirements.
The prevailing situation, and proviso power measures, person besides had an interaction of the home accumulation of Urea.
For context, India receives astir 20-30% of their urea and 30% of their diammonium phosphate (DAP), alongside astir fractional of their depletion of earthy state requirements, from the Gulf region. Essential to note, amidst the escalating conflict, Tehran besides attacked facilities of QatarEnergy, which is the largest earthy state importer successful the satellite and among India’s large suppliers.
Spurring home production
According to govt estimates, the full request for the upcoming Kharif sowing play is astir 390 lakh tonnes. The full banal stands astatine astir 180 lakh tonnes. Now, with earthy state proviso to urea plants augmented to 75-80% of requirements done alternate arrangements, the urea accumulation has accrued by 12,000-15,000 tonnes per day.
“[Thus], reducing the monthly accumulation nonaccomplishment from 9-10 LMT to astir 6-7 LMT,” the authorities informed.
Essential to note, according to govt estimates, India produced 18 lakh tonnes of urea, 9-10 lakh tonnes of phosphorus and potassium fertilisers successful March this year.
In summation to this, seeking to stabilise supplies of cardinal earthy materials arsenic sulphur and LNG, India is tapping into Russia, Morocco, Australia, Indonesia, Malaysia, Jordan, Canada, Algeria, Egypt, Finland and Togo.
