India Builds Supply Buffer With 60-Day Crude Stock and Higher Fertiliser Subsidy

India is strengthening its crude oil and fertiliser strategy as global supply risks continue due to the West Asia conflict.

The government has maintained nearly 60 days of crude oil and petroleum product stocks, while fertiliser subsidy needs for the April-June quarter may rise by ₹10,000–15,000 crore compared with last year. The move is aimed at protecting energy supply, farm inputs, and price stability during a global commodity crisis.

Why Is India Building Supply Buffers?

India is preparing for possible disruptions in key commodities such as crude oil, LPG, urea, DAP, and NPK fertilisers.

The West Asia conflict has affected global supply routes and pushed up international prices. Since India depends heavily on imported energy and fertiliser inputs, the government is focusing on advanced procurement, higher reserves, and subsidy support.

This does not mean there is an economic emergency in India. It means the government is trying to reduce the impact of global shocks on fuel availability, farmer costs, and inflation.

How Much Energy Stock Does India Have?

India has maintained almost 60 days of stock for crude oil and petroleum products. The country also has over one-and-a-half months of LPG reserves. 

Here is India’s wider energy security plan to keep supplies stable: 

• India has procured from alternative sources and increased purchases from existing suppliers over the past few weeks.
• The government is also planning to expand reserve capacity for crude oil, natural gas, and LPG. 

What Is Happening With the Fertiliser Subsidy?

The Finance Ministry has approved additional fertiliser subsidy support for the April-June quarter.

Monthly subsidy requirements may be ₹10,000–15,000 crore higher than the same period last year. This is mainly because global fertiliser prices have increased since the West Asia crisis began, with urea prices rising sharply.

Despite higher costs, the government has kept fertiliser prices unchanged for farmers.

How Much Fertiliser Stock Does India Have?

India’s total fertiliser availability has improved compared with last year.

Fertiliser Stock	Current Availability	Same Period Last Year
Total Fertiliser Stock	199.65 lakh tonnes	178.58 lakh tonnes
Urea	76.65 lakh tonnes	75.48 lakh tonnes
DAP	22.52 lakh tonnes	14.87 lakh tonnes
NPK	60.42 lakh tonnes	48.32 lakh tonnes
MOP	13.07 lakh tonnes	12.99 lakh tonnes

Overall, fertiliser availability has increased by nearly 21 lakh tonnes. The government has also secured an additional 7 lakh tonnes of NPK fertilisers, expected to arrive at Indian ports in May and June.

Why Is Fertiliser Support Important for Farmers?

Fertiliser is a key input for agriculture, especially before the kharif sowing season.

If fertiliser prices rise sharply, farmers may face higher cultivation costs. By increasing subsidy support, the government is trying to keep farm input prices stable and prevent shortages.

This is important because higher farming costs can affect food production, rural income, and inflation. 

Key Takeaway: India’s Crude Oil and Fertiliser Strategy

India’s current strategy focuses on three things:

• Maintaining energy reserves to manage crude oil supply risks
• Increasing fertiliser stocks before the sowing season
• Using subsidy support to protect farmers from global price shocks

Together, these steps aim to strengthen India’s energy security and reduce the impact of the global commodity crisis.

Source: https://www.moneycontrol.com/

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