India's Fertiliser Sector Exposed: Diversifying Feedstock Base for Long-Term Resilience

India's fertiliser sector faces significant vulnerabilities due to its reliance on imported liquefied natural gas (LNG). The country meets nearly half of its LNG requirements through imports, mainly from the Gulf region. This dependence creates structural weaknesses in the agricultural value chain, making India susceptible to global geopolitical disruptions, supply chain constraints, and price volatility.

India's fertiliser manufacturing process heavily relies on natural gas as a feedstock for ammonia production, which is crucial for nitrogen-based fertilisers like urea. Disruptions in LNG supplies can lead to higher fertiliser production costs, supply shortages, and inflationary pressures. The government must address these vulnerabilities by diversifying LNG sourcing, investing in feedstock aggregation and logistics, expanding biogas infrastructure, and integrating with City Gas Distribution (CGD) networks.

Alternative domestic feedstocks like biogas, compressed biogas (CBG), biomethane, and renewable hydrogen can gradually reduce India's dependence on imported hydrocarbons. The government's GOBARdhan initiative aims to promote the use of organic fertilisers and circular economy approaches. Integrated waste-to-energy models can also strengthen domestic feedstock availability.

The long-term resilience of India's fertiliser sector will depend on fundamentally diversifying its feedstock base, strengthening domestic energy systems, and creating an integrated ecosystem that supports economic growth, farmer welfare, and national resilience.