Context:
The ongoing West Asia conflict threatens India’s urea production due to disruptions in Liquefied Natural Gas (LNG) supply, particularly through the Strait of Hormuz, affecting agriculture and fertilizer security.
Key Highlights:
- Energy-Fertilizer Linkage
- 30% of India’s LNG is used in fertilizer production.
- Urea production is highly energy-intensive.
- Import Dependence
- India imports over 50% of natural gas, with 40% from Qatar.
- 71% of urea imports come from West Asia.
- Supply Chain Vulnerability
- Strait of Hormuz is a critical chokepoint; disruption affects 60% of LNG imports.
- Urea plants operating at reduced capacity due to LNG shortages.
- Government Measures
- Natural Gas (Supply Regulation) Order, 2026 prioritizes fertilizer sector.
- Maintenance of urea buffer stocks (61.51 LMT) before kharif season.
Relevant Prelims Points:
- LNG: Natural gas liquefied for storage and transport.
- Urea: Nitrogen-rich fertilizer essential for crop growth.
- Strait of Hormuz: Strategic chokepoint connecting Persian Gulf to global markets.
- Force Majeure: Clause relieving contractual obligations during extraordinary events.
Relevant Mains Points:
- Agricultural Security:
- Fertilizer shortages can impact crop yields and food security.
- Energy Dependence Issue:
- High reliance on imports exposes India to geopolitical shocks.
- Economic Impact:
- Rising fertilizer costs → increased subsidy burden.
- Inflationary pressure on food prices.
- Strategic Concerns:
- Need for secure supply routes and diversification.
- Importance of domestic gas production and alternative inputs.
- Way Forward
- Diversify LNG import sources and explore long-term contracts.
- Boost domestic fertilizer production capacity.
- Promote nano-urea and organic fertilizers.
- Invest in renewable energy-based fertilizer production (green ammonia).
UPSC Relevance:
- GS 3: Economy, Agriculture, Energy
- GS 2: International Relations