Fertiliser production in India plummeted to a five-year low in March, largely due to input shortages triggered by the ongoing conflict in West Asia.
The combined index of eight core industries contracted by 0.4% on an annual basis, with fertilisers, crude oil, coal, and electricity being the main drivers of the decline.
Fertiliser output dropped 24.6% from a year earlier, the sharpest fall among the eight industries, with the production index coming in at 95.7 in March 2026.
India imports about 27% of its total fertiliser consumption, and recent developments suggest that the worst of the supply shock to the fertiliser industry is over.
Natural gas supplies to fertiliser plants have been raised again, which should help revive production and mitigate the impact of the supply chain crisis.
Coal production fell 4%, crude oil output contracted 5.7%, and electricity generation slipped 0.5% in March, while steel and cement continued to expand but at a slower pace.
