India's dual dependence on West Asia for urea production threatened by conflict
India faces significant vulnerability in its urea production due to a dual dependence on West Asia for both Liquefied Natural Gas (LNG) imports, a key feedstock, and direct urea imports. The ongoing conflict in West Asia and the potential closure of the Strait of Hormuz, a critical chokepoint, threaten to disrupt these supply chains. Currently, India's urea plants are running at half capacity, and over 60% of its imported LNG and 71% of its urea imports originate from West Asia via the Strait. This poses a severe risk to India's agrarian economy, despite government efforts to prioritize the fertilizer sector.
Key Points
- India is critically dependent on West Asia for both LNG (feedstock for urea) and direct urea imports.
- The West Asian conflict and potential closure of the Strait of Hormuz pose a severe threat to India's urea supply chain.
- A significant portion of India's LNG and urea imports pass through the Strait of Hormuz, making the country vulnerable.
- Disruptions have already led to India's urea plants operating at half capacity, impacting the agrarian economy.
Exam Facts
- India is the fourth largest buyer of natural gas globally (261 lakh metric tonnes imported in 2025).
- Over 60% of India's imported LNG from West Asia could be affected by Strait of Hormuz closure.
- 71% of India's urea imports (exceeding 2,300 lakh metric tonnes in 2025) come from West Asia.
- Natural Gas (Supply Regulation) Order, 2026, includes the fertilizer sector in its priority list.
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