War in West Asia may disrupt India's fertilizer supply
What's the story
India currently has an adequate supply of fertilizers. However, a prolonged conflict in West Asia could pose challenges for future crop seasons. Fertilizers and Chemicals Travancore Limited (FACT), the leading supplier to South Indian states, says it is confident it can maintain supply provided there are no further disruptions. The company has enough raw material stockpiles and says it will meet farmers' fertilizer requirements.
Supply chain
FACT's assurance amid ongoing West Asia conflict
FACT, a public sector company, relies on raw materials like rock phosphate and phosphoric acid imported from various countries in West Asia and the Middle East. These are transported via sea routes. The ongoing conflict could have a major impact on the global economy, analysts say. However, S Sakthimani, Managing Director of FACT, assured PTI that there is no immediate cause for concern regarding fertilizer production in India.
Crop seasons
Rabi crop at risk if situation worsens
Sakthimani said, "We have sufficient urea available. We hope that things (the war situation) will probably be resolved within a month." He added that there are no problems with the gas line in the region right now. However, he warned if the situation continues for six months, it could affect the next crop season, the Rabi season. The company is taking appropriate steps to address this potential issue.
Supply assurance
Central government procures DAP, DSP stocks
Sakthimani stressed that companies like FACT source gas from both the Middle East and Australia. He assured that the Indian government has procured stocks of di-ammonium phosphate (DAP) and double super phosphate (DSP) from various companies, ensuring no disruptions. Another senior official at FACT revealed that the company currently has a total fertilizer stock of around 1.4 lakh metric tons, enough to meet demand for some time.
Production strategy
FACT's raw material reserves and history
FACT has enough raw material reserves to produce 1.5 lakh metric tons of fertilizers between March and April 2026. The company hopes to maintain an uninterrupted fertilizer supply beyond April 2026 for the 2026-27 Kharif season, provided there are no further disruptions in supply chain.