Fertilizer sector relies on imported RLNG as domestic gas supply falls short

The MP asked the Ministry of Chemicals and Fertilizers to detail the government's assessment of India's dependence on imported fertilizer inputs, the efficiency of aging urea plants, and measures taken to modernize capacity and curb black marketing.

Asked and answered by: Asked by Shri Vishaldada Prakashbapu Patil; Answered by the Ministry of Chemicals & Fertilizers (Minister Shri Jagat Prakash Nadda).

What the government said

• Natural gas consumption by the fertilizer sector was 19,649 MMSCM in 2025-26, comprising 2,887 MMSCM domestic gas and 16,762 MMSCM imported RLNG.
• Six new urea units with a combined capacity of 76.2 LMTPA were set up under the New Investment Policy (NIP) 2012.
• Total indigenous urea production capacity increased from 207.54 LMTPA in 2014-15 to 269.42 LMTPA in 2026-27.
• Urea production reached a record 314.07 LMT in 2023-24, with 293.30 LMT produced in 2025-26.
• The National Investment Policy for Urea-2026 (NIPU-2026) was approved by the CCEA on 15.07.2026.
• From 01.04.2026 to 17.07.2026, 1,58,886 raids were conducted, resulting in 8,262 show cause notices, 2,692 licenses suspended/cancelled, and 247 FIRs registered.
• Fertilizers are declared as an essential commodity under the Essential Commodities Act, 1955, and regulated under the Fertilizer Control Order, 1985.

Also in the document

• The answer states that domestic natural gas availability is limited relative to sector requirements, necessitating the use of imported Re-gasified Liquefied Natural Gas (RLNG).
• The answer provides specific enforcement statistics for the period April-July 2026, including the number of raids and FIRs, but does not provide a specific figure for the total value of black marketing or diversion losses.
• The answer notes that the gap between demand and indigenous production is met through timely imports to ensure availability.