Panjab CM Seeks Uninterrupted Fuel & Fertilizer Supply in Harvest Season

March

2026

Panjab Chief Minister Bhagwant Mann urged the union government to ensure an uninterrupted supply of petrol, diesel, and Diammonium Phosphate fertilizer as Panjab gears up for an estimated 14 MMT wheat harvest. While reiterating that there is no cause for panic, Mann underscored that timely action by the union government is essential to keep harvesting operations and grain movement running smoothly. Meanwhile, India's fertilizer supplies are under pressure after disruptions to shipping routes due to the Israel & US war on Iran, raising concerns about lower farm produce and higher food prices. India is the world's second-largest fertilizer user and depends heavily on imports of both raw materials and finished products from the Persian Gulf, passing through the Strait of Hormuz. Nitrogen fertilizers like urea are crucial for farmers because many major food crops, including paddy and wheat, cannot absorb adequate nitrogen directly from the air. With India using nearly 40MT of urea annually, its consumption accounts for 45% of fertilizer consumption in the country. Farmers in Panjab typically start buying urea in May for the sowing season beginning June, and therefore are not yet feeling the stress, but will soon. Additionally, a report by Crisil Ratings states that the country’s fertilizer subsidy bill could climb by USD 2.12–2.66B due to the Strait of Hormuz blockade. It can potentially impact annual domestic production of both complex fertilizers and urea by 10–15%. The Persian Gulf supplies about 60–65% of India’s Liquified Natural Gas needs and 75–80% of ammonia imports. The union government also cut excise duty on fuel and withdrew the tax rebate and duty exemption benefits on exports of petrol, high-speed diesel and aviation turbine fuel, amending the Central Excise Rules, 2017, with immediate effect. The excise duty on petrol and diesel for domestic consumption has been reduced by USD 0.11 (INR 10) per liter. Concurrently, in Panjab, households with double bottle (two-cylinder) connections will now have to wait for 35 days instead of 25 days to book a refill with Indian Oil Corporation. The wait for Pradhan Mantri Ujjwala Yojana (fuel scheme) beneficiaries has gone up to 45 days from 20 days (earlier coverage).