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Parliamentary panel urges strategic fertiliser reserves against supply shocks

Parliamentary panel urges strategic fertiliser reserves against supply shocks
Build strategic fertiliser reserves to address external shocks: Panel · financialexpress.com

Farmers use special plant food called fertiliser to help their crops grow.

India does not make enough of this plant food, so it buys a lot from other countries.

Sometimes world events, like fights between countries, can stop the ships that carry fertiliser.

That happened recently when a very important shipping route, the Strait of Hormuz, was closed.

It became harder and more expensive for India to get fertiliser.

A group of important lawmakers called a parliamentary committee studied this problem.

They told the government to keep spare fertiliser stored away, like keeping extra food in a cupboard.

That way, farmers would still have plant food even if ships cannot come.

They also said the government should watch out for people misusing cheap fertiliser to make things like plywood instead of farming.

The government gave out a huge amount of fertiliser, and the money spent on it was more than expected, so the panel wants the country to be better prepared next time.

Key facts

Recommending body
Parliamentary standing committee on chemicals and fertilisers
India's import dependence
About 70% of fertiliser consumption and raw material usage
FY26 subsidised fertiliser supplied
Over 70 million tonnes (urea, DAP, MoP and NPKs)
FY26 subsidy outgo
Rs 2.17 lakh crore actual vs Rs 1.86 lakh crore revised estimate
Key disruption
Closure of the Strait of Hormuz after the US-Iran conflict hit fertiliser and LNG supplies
Products eyed for regional reserve
Diammonium Phosphate (DAP) and Muriate of Potash (MoP)
Reported urea diversion uses
Plywood factories, resin manufacturing units, diesel exhaust fluid producers and cattle feed manufacturers

Quotes

Parliamentary standing committee on chemicals and fertilisers

Committee recommending policy changes

“It noted that recent geopolitical developments, including the West Asia crisis, highlighted the vulnerability of fertilizer supply chains to external disruptions affecting both imports and domestic production.”
financialexpress.com
“The government must formulate a contingency plan for creating a strategic fertiliser reserve and protocol to strengthen preparedness against global supply disruptions”
financialexpress.com

Sources

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