3 weeks ago
Parliamentary panel urges strategic fertiliser reserves against supply shocks
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.
A parliamentary panel recommended creating a strategic fertiliser reserve and contingency plan to counter global supply disruptions.
The recommendation follows the West Asia crisis, when the Strait of Hormuz closure after the US-Iran conflict disrupted fertiliser and LNG (a key urea feedstock) supplies.
India imports about 70% of its fertiliser consumption and raw material usage; in FY26, the government supplied over 70 million tonnes of subsidised fertiliser variants.
The panel proposed a joint monitoring mechanism with real-time input to curb diversion of subsidised neem-coated urea for industrial use such as plywood and resin manufacturing.
FY26 fertiliser subsidy actual outgo was Rs 2.17 lakh crore against a revised estimate of Rs 1.86 lakh crore, with FY27 outgo expected higher due to elevated global prices.
- Who
- The parliamentary standing committee on chemicals and fertilisers, which reported to the Government of India and the Department of Fertilisers.
- What
- Recommended building a strategic fertiliser reserve, minimum opening stocking norms, advance procurement, gas allocation coordination, and anti-diversion monitoring mechanisms.
- Where
- India, with proposed stocking norms at both national and state levels, and consideration of a regional reserve.
- When
- In a recent report, with reference to the ongoing kharif season, FY26 actuals, and the FY27 subsidy outlook.
- Why
- Geopolitical shocks such as the West Asia crisis and the closure of the Strait of Hormuz exposed the vulnerability of fertiliser and LNG supply chains.
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





