Government Increases Natural Gas Supply to Fertiliser Plants Amid Easing Gulf Tensions

Key Takeaways

The gas allocation to fertiliser plants will rise by 5% .

Effective from April 9 , this will reach 95% of the average six-month consumption.

This decision is influenced by recent geopolitical developments in the Gulf.

The kharif season's budget requirement has increased to Rs 41,533.81 crore .

Farmers will have access to 28 grades of fertilisers at subsidised rates.

New Delhi, April 8 (NationPress) The government declared on Wednesday that, taking into account current inventory and scheduled LNG shipments, the total gas supply to fertiliser manufacturing units will be increased by 5 percent, reaching around 95 percent of their average six-month usage, effective from April 9.

This decision follows the recent ceasefire between the US and Israel, which is anticipated to allow vessels trapped in the Persian Gulf to navigate the Strait of Hormuz with their oil and gas deliveries.

All Indian sailors in the Gulf are reported safe, with no incidents involving Indian-flagged ships in the last 24 hours. The Directorate General of Shipping, in partnership with ship owners, recruitment agencies, and Indian Missions, is actively monitoring the situation, as stated by the Ministry of Shipping and Ports.

The increase in natural gas supply to fertiliser units coincides with the Union Cabinet's approval of a proposal from the Department of Fertilisers to set the Nutrient Based Subsidy (NBS) rates for this year’s kharif season (April 1 to September 30) for Phosphatic and Potassic (P&K) fertilisers. The projected budgetary requirement for this kharif season is approximately Rs 41,533.81 crore, which is around Rs 4,317 crore more than last year’s kharif budget of Rs 37,216.15 crore, according to an official announcement.

This approval aims to guarantee that farmers have access to fertilisers at subsidised, affordable prices. The adjustment of subsidies on P&K fertilisers is being implemented in response to recent fluctuations in international fertiliser and input prices.

Subsidies will be allocated to fertiliser companies according to approved rates, ensuring that farmers can access these vital products at reasonable prices.

The government is facilitating the availability of 28 grades of P&K fertilisers, including DAP, at subsidised rates through manufacturers and importers. The subsidy scheme for P&K fertilisers has been in effect since April 1, 2010. Committed to a farmer-friendly strategy, the government is focused on ensuring that farmers receive P&K fertilisers at accessible prices, as per the statement.

Point of View

This strategic increase in natural gas supply reflects the government's commitment to supporting farmers during critical planting seasons. It showcases a proactive approach to managing resources amidst international developments, emphasizing the importance of agricultural stability.

NationPress

9 Jul 2026

Frequently Asked Questions

What is the reason for the increase in gas supply?

The government has decided to increase gas supply to fertiliser plants by 5% due to improved inventory and scheduled LNG cargo arrivals, coinciding with easing tensions in the Gulf region.

How will this impact farmers?

This increase in gas supply will ensure that fertiliser units can operate efficiently, allowing farmers access to fertilisers at subsidised and affordable prices during the kharif season.

What is the budgetary requirement for the kharif season?

The tentative budget for the kharif season is approximately Rs 41,533.81 crore, which is an increase from last year's budget of Rs 37,216.15 crore.

What types of fertilisers are included in the subsidy?

The subsidy covers 28 grades of Phosphatic and Potassic (P&K) fertilisers, including DAP, ensuring farmers have access to essential nutrients at reduced costs.

When did the subsidy scheme for P&K fertilisers begin?

The subsidy scheme for P&K fertilisers has been in effect since April 1, 2010.