en.Wedoany.com Report on Mar 24th, The Fertilizer Association of India (FAI) has recently appealed to the government to provide financial support to urea producers affected by gas supply constraints. The association warned that production shortages and packaging material supply issues could disrupt fertilizer supplies ahead of the crucial monsoon season. In a letter to the government, the FAI called for compensation of energy costs and exemption from penalties for plants operating under restricted gas supply, citing the current exceptional circumstances.

Fertilizer plants have been categorized under Priority Sector 2 by the Gas Supply Regulatory Order notified on March 9, 2026, which allocates them 70% of their six-month average consumption. The FAI stated that this restriction is affecting the production capacity of plants operating under the New Urea Policy 2025, the revised NPS III, and the NIP 2012 framework. The industry body seeks government recognition of either the actual energy consumption during the disruption period or the applicable energy norm—whichever is higher.

The FAI also requested exemption from or compensation for any imbalance penalties levied by gas suppliers, along with full compensation for the quantity and price of gas as per invoices during the crisis. Furthermore, the FAI separately highlighted packaging material supply issues, warning that some domestic polypropylene and high-density polyethylene granule suppliers have reduced production, threatening the packaging supply chain for fertilizer plants and ports. "The reduced availability could derail all attempts to smoothly dispatch fertilizers during the critical stock accumulation season," the FAI said, urging granule suppliers to maintain matching supply volumes. The monsoon sowing season typically begins in June, when demand for urea—the country's most widely used fertilizer—peaks sharply.