India's Department of Fertilizers restricts surplus ammonia sales to fertiliser producers
→API procurement teams cannot source surplus ammonia from urea plants
Change
India's Department of Fertilizers has ordered all urea manufacturing units to allocate surplus ammonia exclusively to fertiliser production, prioritising supply to P&K and NPK subsidised fertiliser makers and enforcing compliance with the Natural Gas (Supply Regulation) Order, 2026.
Why it matters
Pharmaceutical manufacturers that sourced ammonia from urea plants lose that long-standing supply channel for active pharmaceutical ingredient (API) synthesis. Manufacturers state they have no immediate alternative sources for ammonia.
Implications
- → Procurement teams at pharmaceutical manufacturers must secure alternative ammonia supply immediately — failure to secure replacement feedstock will force production cuts and delay export order fulfilment.
- → Urea manufacturing units must withdraw open tenders offering surplus ammonia to non-fertiliser buyers and prioritise allocations to P&K/NPK subsidised fertiliser manufacturers now — continued diversion would breach the Natural Gas (Supply Regulation) Order, 2026.
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Source
View on Economic Times