FAI seeks govt relief for urea producers amid gas curbs, supply fears

Fertiliser Association of India (FAI) has urged the government to provide financial relief to urea producers hit by gas supply disruptions, warning that production shortfalls and a separate packaging materials crunch could disrupt fertiliser supplies ahead of the crucial kharif season. In a letter to the government, FAI called for energy cost reimbursements and penalty waivers for plants operating under constrained gas supplies, citing extraordinary circumstances stemming from the ongoing geopolitical crisis. Fertiliser plants are classified under Priority Sector-2 in the Natural Gas Supply Regulation Order notified on March 9, 2026, which allocates them 70 per cent of their six-month average consumption. FAI said the restriction was squeezing production at plants operating under the New Urea Policy 2025, modified NPS III and NIP 2012 frameworks. The industry body sought the government to recognise actual energy consumption or applicable energy norms - whichever is higher - during

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