India's Agricultural Sector Exposed: The Energy-Fertiliser Nexus
India's agricultural sector is heavily reliant on imported fertilisers and energy, making it vulnerable to global market fluctuations. The country's dependence on Middle Eastern oil and gas for its urea production has led to sharp price increases during geopolitical disruptions. In 2026, a conflict in the Gulf severely disrupted global urea supply, forcing India to procure 2.5 million metric tonnes at nearly double the prevailing price.
The structural fragility of India's fertiliser and energy supply chains poses a significant threat to its agricultural sector, which supports hundreds of millions of rural households. The country's current import architecture carries latent price and supply risk that activates rapidly under geopolitical stress, with consequences flowing directly into farm-gate input costs.
A comprehensive strategy for India's energy and fertiliser self-reliance must address all three primary fertiliser categories, urea, DAP, and MOP. The country aims to reduce its import dependency through modernisation of existing domestic manufacturing, strategic international partnerships, and long-term domestic green ammonia production.