Urea production in India has taken a major hit, with 17 out of a total 28 urea plants, mainly on the HBJ pipeline, shutting down in the wake of the strike by key sector PSUs ONGC and GAIL, according to The Economic Times. Sources say the development has thrown the fertilizer sector into a tailspin, and the crucial Rabi output in the short term, and food security in the longer term, into jeopardy.
The Times said at least 13 of the units are on the HBJ gas pipeline, while the rest are standalone units. Concerns are if the strike continues beyond a few days, other units running on fuel oil and naphtha could also be affected. The fertilizer companies identified as closed down completely are Kribhco (Hazira unit), NFL (Vijaipur unit), CFCL (Gadepan), Iffco (Aonla, Phulpur), Indo-Gulf (Jagdishpur), KSFL (Shahjahanpur), TCL (Babrala), GSFC (Vadodara), and RCF (Thal).
Among the units that have closed down but are not on the HBJ pipeline are those of GSFC, RCF, IFFCO (Kallol), and Nagarjuna Fertilizers.
“This is happening at a time when demand for urea is peaking and is bound to have severe impact on agricultural production in the Rabi season,” according to a quote in the Times made by a senior Fertilizer Association of India (FAI) official. “It will add further to the farmers’ woes. We can ill afford a strike of this nature at this crucial juncture, and the sooner the authorities take appropriate measures to remedy the situation, the better for us.”