India Prevents Major Fertiliser Shortages Despite Global Energy Shock

The global energy supply shock triggered by the US-Israel versus Iran war has had significant effects on various countries, but India has managed to prevent major fertilizer shortages due to proactive government action.

Data from the Fertiliser Association of India shows that urea production fell in March 2026 compared to the previous year, but domestic output recovered quickly and even exceeded the same quarter last year by 5.4%.

The main reason for the initial drop was supply disruptions in liquefied natural gas (LNG), which accounts for a significant portion of India's fuel imports.

However, the government pushed GAIL (India) Ltd and Indian Oil Corporation to diversify their LNG sourcing, resulting in increased imports from various countries such as the US, Oman, Nigeria, and Indonesia.