Fertiliser production in India reached a five-year low in March, dropping 24.6% from the previous year. This decline is attributed to input shortages caused by the ongoing war in West Asia. The Ministry of Commerce and Industry reported that the overall index of eight core industries contracted by 0.4% annually, the weakest since August 2024.
Excluding fertilisers, the core sector index would have remained flat. The fertiliser production index stood at 95.7 in March 2026, the lowest since April 2021. To ensure a smooth new cropping season, India needs to address the supply-chain crisis or increase imported fertiliser supplies, as the country imports about 27% of its total fertiliser consumption.
Recent developments indicate that the supply shock may be easing, with natural gas supplies to fertiliser plants raised from 90% to 95% of their requirements. This follows a previous increase from 70% to 90%. Enhanced gas supplies in April are expected to help revive production.
