India Aims to Boost Domestic Production of Technical-Grade Urea Amid Supply Disruptions
Govt eyes GSFC to boost automotive-grade urea supply amid Gulf disruptions
Mint
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India is seeking to enhance domestic production of technical-grade urea (TGU) to reduce reliance on imports, especially due to disruptions caused by the ongoing conflict in West Asia. The Gujarat State Fertilizers and Chemicals (GSFC) is being considered to help meet the automotive industry's demand for TGU, which is critical for diesel exhaust fluid used in vehicles.
- 01India currently produces 1.5 lakh tonnes of urea annually, while the automotive sector requires 6 lakh tonnes.
- 02The ongoing conflict in West Asia has disrupted urea supplies, prompting the government to explore domestic production.
- 03GSFC has some capacity to produce TGU and is being considered as an additional source.
- 04Urea is crucial for India's agriculture, accounting for about 55% of total fertilizer consumption.
- 05Balancing industrial and agricultural demand for urea remains a critical challenge for the government.
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India is intensifying efforts to address its long-standing challenges in manufacturing technical-grade urea (TGU), essential for diesel exhaust fluid (Adblue) used in diesel vehicles. Currently, India has a production capacity of 1.5 lakh tonnes of urea annually, while the automotive sector's demand reaches 6 lakh tonnes, with the shortfall being met through imports from the Gulf region. However, ongoing disruptions due to the conflict in West Asia have prompted the Indian government to consider bolstering domestic production. Gujarat State Fertilizers and Chemicals (GSFC) is being eyed as a potential contributor to TGU production. The company has developed a capacity of 35 metric tonnes per day for TGU, but this is only available during specific downtime in its melamine production. The government aims to reduce import dependence and ensure a stable supply for the automotive sector while maintaining adequate urea availability for agriculture, which employs about 40-50% of India's workforce. The balancing act of meeting industrial demand without compromising agricultural needs remains a key focus amid rising urea consumption and dependency.
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Increasing domestic TGU production will help stabilize supply for the automotive sector, potentially reducing costs and ensuring that agricultural needs are not compromised.
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