BackECONOMY
India’s fertiliser output falls to a five-year low in March
March data show fertiliser production in India fell sharply, hitting a five-year low, with the core sector index contracting as input shortages persisted. Recovery signs were highlighted by gas-supply improvements and mixed movements in other core industries.
Why It Matters
The fall in fertiliser output underscores ongoing input constraints that could affect agricultural input availability and inflation. A partial easing in gas supplies and reliance on imported fertilisers are key factors shaping near-term production and policy responses.
Timeline
3 Events
Article published detailing fertiliser output decline and implications
April 21, 2026
The article discusses the potential impact on the upcoming cropping season, noting India imports about 27% of its total fertiliser consumption per the Economic Survey. It also highlights signs that the worst of the fertiliser supply shock may be over, aided by the gas-supply improvements noted earlier and expectations of production revival in April.
Ministry releases March core sector data showing fertiliser output at five-year low
April 20, 2026
The Ministry of Commerce and Industry released March 2026 data. Fertiliser production plunged 24.6% year-on-year, with the fertiliser production index at 95.7—the lowest since April 2021 (88.3). The combined index of eight core industries contracted 0.4% year-on-year, the weakest since August 2024. The contraction was driven by fertilisers, crude oil, coal and electricity. Excluding fertilisers (weight 2.63%), the core index would have remained flat. In March, coal output fell 4%, crude oil output fell 5.7%, and electricity generation fell 0.5%. Steel rose 2.2% in March, while cement increased 4% (compared with February’s 8.9% growth). The February index final growth rate was revised to 2.8%, and the cumulative growth for FY 2025-26 stood at 2.6%.
HT reports natural gas supplies to fertiliser plants raised from 90% to 95% of requirement
April 9, 2026
Hindustan (HT) reports that natural gas supplies to fertiliser plants were increased from 90% to 95% of requirement, marking a step toward easing the input crunch that pressured fertiliser production. The report notes this followed a prior increase from 70% to 90% and suggests the move is part of ongoing efforts to mitigate supply shocks.