India's Fertiliser Production Declines to Record Low Amid LNG Supply Issues
March drag pulls India's fertiliser production to a multi-year low
Business Standard
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India's fertiliser production saw its weakest annual growth in 13 years, contracting 0.1% in FY26. A significant 24.6% drop in March 2026, attributed to maintenance shutdowns and LNG supply shortages, pulled the sector into negative territory despite earlier gains. Recovery is expected in April, but production will still lag behind last year.
- 01Fertiliser production contracted 0.1% in FY26, marking the weakest growth in 13 years.
- 02March 2026 experienced a dramatic 24.6% decline, the steepest monthly drop since 2012.
- 03Urea output fell nearly 27% year-on-year in March due to maintenance shutdowns.
- 04Domestic DAP production decreased by 1.6%, while NP/NPKS output rose by nearly 12%.
- 05Recovery in April is anticipated, with urea production expected to reach around 2 million tonnes.
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India's fertiliser production faced a significant downturn in FY26, contracting 0.1% year-on-year, marking the first negative growth since 2012-13. The decline was exacerbated by a sharp 24.6% drop in March 2026, attributed to maintenance shutdowns at urea plants due to limited liquefied natural gas (LNG) supplies. This led to a nearly 27% decrease in urea output, totaling around 1.8 million tonnes for the month. Additionally, phosphorus and potassium fertiliser production fell by 16–24% compared to March 2025. Despite some recovery in production in subsequent months, the March slump overshadowed earlier gains, particularly after a major urea plant in North India shut down operations in April, resulting in a loss of 500,000–600,000 tonnes. While a rebound in urea production to about 2 million tonnes is expected in April, this figure remains below the 2.18 million tonnes produced in April 2025.
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The decline in fertiliser production could lead to increased prices for agricultural inputs, affecting farmers' costs and potentially impacting food prices.
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