India’s Urea Production Takes a Hit Amid Iran War

NEW DELHI, Mar 30: An Indian government official has warned that domestic urea production has been affected, leaving supply conditions “very vulnerable” as the Iran–Israel War enters its 31st day. Authorities are intensifying efforts to secure fertiliser supplies ahead of key agricultural seasons.

Aparna S. Sharma, Joint Secretary in the Department of Fertilizers, said the government has already lined up multiple imports to ensure availability during April and May, which are critical months for stocking ahead of upcoming crop cycles.

Officials noted that while these months are relatively lean in terms of farming activity, they are crucial for building inventories. States have been advised to prevent panic over availability, while authorities maintain strict monitoring to curb diversion, hoarding, and black marketing. Governments are also encouraging the use of alternative fertilizers such as ammonium sulphate and triple super phosphate to reduce pressure on urea demand.

Urea remains a key agricultural input, and India’s reliance on imports to meet domestic demand exposes the sector to global price fluctuations and supply disruptions. Officials estimate that around 15 percent of India’s annual urea requirement is met through imports.

The issue carries broader economic significance for India, where nearly 46 percent of the population depends on agriculture and allied sectors for livelihoods, contributing about 16 percent to GDP, according to government data. Any disruption in fertiliser availability can affect crop yields, input costs, and ultimately food prices.

Authorities said they continue to monitor the situation closely to ensure stable supply chains and protect farmers ahead of the main agricultural cycle.