Priority Sector-2 gas supply rule in India assures fertiliser plants 70% average usage

Fertiliser plants have been moved to Priority Sector-2 for natural gas supply, the government said on Tuesday. The change assured plants at least 70 per cent gas of average use. The aim was to keep fertiliser output steady despite global disruptions. The step addressed risks linked to the conflict in West Asia.

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The Ministry of Fertilisers said the rule was notified through the Natural Gas Supply Regulation Order, 2026 on March 9. The average gas use will be measured from the previous six months. The ministry said the decision was meant to protect production. It focused on key soil nutrients needed for farm activity.

Natural gas supply for fertiliser plants

The ministry said the measure tackled supply chain stress, mainly linked to LNG flows. The statement pointed to the ongoing conflict in the Middle East. Officials flagged that instability in West Asia could interrupt LNG shipments. That could affect fertiliser output before the Kharif sowing season.

Senior officials from fertiliser companies attended a high-level meeting at the Department of Fertilisers on Tuesday. They shared their readiness status and listed operational concerns. Officials from the Ministry of Petroleum and Natural Gas also joined the discussion. The meeting focused on supply planning and risk points.

Natural gas supply and fertiliser reserves before Kharif

The Department of Fertilisers said India’s total fertiliser reserve reached 180.12 lakh tonne ahead of Kharif. This was 36.6 per cent higher than 131.79 lakh tonne on the same date last year. The build-up was led by DAP at 25.17 lakh tonne. NPK/NPKS stocks were 56.30 lakh tonne.

As of March 10, the department listed detailed stock levels across products. Urea stood at 61.51 lakh tonne and DAP at 25.17 lakh tonne. NPK was 56.30 lakh tonne and Potash was 12.90 lakh tonne. SSP stock was recorded at 24.24 lakh tonne.

Natural gas supply and urea imports plan

On imports, the government brought in 98 lakh tonne of urea as of February 2026. The department said 17 lakh tonne more was in the pipeline. It was expected over the next three months. The plan was framed to support supply during the peak farm season.

The department said advance stocking during low-demand periods created the larger buffer. It added that maritime transport faced disruptions in recent weeks. Even so, the department said domestic supply to farmers would remain unaffected. The Priority Sector-2 gas allocation was set to support stable domestic fertiliser production.

With inputs from PTI