The Ammonia Udyog Association has raised alarm over potential disruptions to critical industries in the wake of the government’s latest directive on ammonia usage, warning that even a small supply squeeze could ripple across power, healthcare, and strategic sectors.

 

In a formal representation to the Department of Fertilizers, the industry body opened with a direct response to the April 18 advisory, stating: “We write on behalf of Ammonia Udyog Association.” It added, “We acknowledge the Advisory No. 12019/45/2021-UPP (e.29841) dated 18.04.2026 issued by the in reference to the, and appreciate the objective of ensuring appropriate utilization of natural gas for fertilizer production.”

 

But the tone quickly sharpened. “At the same time, we respectfully submit an urgent public-interest concern regarding continuity of ammonia supply to critical and strategic sectors.”

 

The concern stems from the government’s tightening of rules under the Natural Gas (Supply Regulation) Order, 2026, which mandates that gas supplied to fertilizer plants be used strictly for fertilizer production. The April 18 advisory further directs urea manufacturers to prioritize ammonia supply for fertilizer use, particularly for P&K producers, amid reported shortages and pricing issues.

 

The Association underscored ammonia’s role far beyond fertilizers, calling it indispensable to thermal power plants, refineries, steel and cement production, nuclear operations, pharmaceuticals, pollution control systems, cold storage chains, and even defence and space-linked applications.

 

Despite the wide footprint, the industry body highlighted a stark imbalance: “The ammonia required to sustain the above sectors is only —2% of total ammonia produced/imported in the country,” but urged, “this small quantity is critical for continuity of operations.”

 

The letter lays out a cascade of risks if supplies are disrupted: halted industrial operations, compromised environmental compliance, interruptions in life-saving drug production, stress on cold chains, and setbacks to strategic programmes.

 

“In case supply to these sectors is disrupted, even temporarily,” the Association cautioned, “essential operations in power, refineries, cement, steel, and utilities may be affected,” adding that “production of life-saving drugs and key chemicals may be disrupted” and “strategic sectors including space and defence-related operations may face challenges.”

 

Seeking clarity, the Association has asked the government to define a workable pathway that balances fertilizer priorities with national infrastructure needs. 

 

“In view of the above, we humbly seek guidance on ensuring continued availability of ammonia for the above critical sectors, while maintaining priority for fertilizer use,” it said, also calling for “a clear framework to facilitate supply of limited quantities required for such essential applications.”

 

The letter closes with a conciliatory note, emphasizing alignment with policy goals: “We respectfully submit that ensuring continuity of ammonia supply to these sectors would support national priorities while remaining aligned with the objectives of the Advisory.”

 

With competing demands tightening around a crucial industrial input, the government now faces a delicate balancing act—one that could test both supply chains and policy flexibility in the weeks ahead.