New Delhi: Prime Minister Narendra Modi on Sunday chaired a Cabinet Committee on Security (CCS) meeting to review and ensure the availability of critical resources such as food, energy and fertilizers amid the ongoing conflict in West Asia.
The CCS meeting focused on preventing black-marketing and hoarding of essential commodities. The meeting comes against the backdrop of the escalating war in West Asia, amid concerns that rising crude oil prices could threaten India’s projected 7.4% economic growth for the current financial year ending 31 March.
“The Cabinet Secretary gave a detailed presentation on the global situation and mitigating measures taken so far and being planned by all concerned Ministries/Departments of Government of India. The expected impact and measures taken to address it across sectors like agriculture, fertilisers, food security, petroleum, power, MSMEs, exporters, shipping, trade, finance, supply chains and all affected sectors were discussed. The overall macro-economic scenario in the country and further measures to be taken were also discussed,” according to a statement from the Prime Minister’s Office (PMO).
The meeting was attended by senior cabinet ministers, including defence minister Rajnath Singh, home affairs minister Amit Shah, finance minister Nirmala Sitharaman, and external affairs minister S. Jaishankar, along with other cabinet colleagues and senior government officials, according to the PMO statement.
Modi directed the formation of a group of ministers and secretaries to work in a dedicated, whole-of-government approach. He also instructed that sector-specific groups be set up to work in close consultation with all stakeholders.
The war in West Asia and the blockade of the Strait of Hormuz assume significance, as India imports about 90% of its oil requirements. Around 40% of these imports were routed through the strait before the conflict began. It’s not just oil flow that has been disrupted. Liquefied natural gas (LNG) supplies have also been impacted. In FY2025, about 50% of India’s crude oil imports and 54% of LNG imports were routed through the Strait of Hormuz. About 90% of India’s total LPG imports came from West Asia through the strait.
“All refineries are operating at high capacity, with adequate crude inventories in place. The country is also maintaining sufficient stocks of petrol and diesel,” the petroleum and natural gas ministry said in a separate statement. “Domestic LPG (liquefied petroleum gas) production from refineries has been maximised.”
“Supply of LPG is still a concern in view of prevailing geopolitical situation,” the petroleum ministry said.
India, the world’s third-largest oil buyer, consumes about 5.5 million barrels of crude daily, of which 1.5–2 million barrels pass through Strait of Hormuz. With India already lowering Russian oil imports, West Asia had emerged as a key alternative over the past two months.
The US-Israeli war with Iran has already led to a surge in prices, with Brent trading above the $100 per barrel mark. A rise of $1 per barrel in global oil price increases India’s annual import bill by about ₹13,000 crore. In FY25, India imported oil worth $160 billion. Given that the oil import expenses account for around a fourth of India’s total import bill, a surge in oil prices can have significant consequence for the Indian economy. Already, oil marketing companies have raised the price of domestic LPG by ₹50 per 14.2 kg cylinder, premium petrol by ₹2 per litre and industrial diesel by ₹22 per litre.
“The ongoing conflict in West Asia will have significant short, medium and long term impact on the global economy and its effect on India were assessed and counter-measures, both immediate and long-term, were discussed,” the PMO statement said.
Detailed assessment of availability for critical needs of the common man, including food, energy and fuel security was made and short-term, medium-term and long-term measures to ensure continued availability of essential needs were discussed, the PMO statement added.
“The impact on farmers and their requirement for fertilizer for the Kharif season was assessed. The measures taken in the last few years to maintain adequate stocks of fertilizers will ensure timely availability and food security. Alternate sources of fertilizers were also discussed to ensure continued availability in the future,” the PMO statement said.
India is also the second-largest global consumer of fertilizer with a steady demand growth. India is the world’s largest importer of diammonium phosphate (DAP) and urea; the world’s second-largest agricultural producer imports 60% of its DAP needs and 15% of its urea and NPK fertilizer demand. In addition to finished fertilizers, India also imports several key raw materials and intermediates such as rock phosphate, phosphoric acid and potash due to limited domestic availability.
The conflict in West Asia and the blockade of the Strait of Hormuz are beginning to strain India’s fertilizer supply chain. Urea and DAP imports from West Asia, including Saudi Arabia, United Arab Emirates (UAE) and Qatar, accounted for nearly 50% of India’s DAP imports and around a third of urea imports during FY25.
As of 19 March, total fertilizer stocks stood at 18 million tonnes, up 29.7% from a year earlier, supported by advance stocking and lower off-season demand.
Urea stocks were at 6.11 million tonnes, DAP at 2.4 million tonnes, and NPK fertilizers at 5.7 million tonnes. The buffer is seen as adequate to meet early kharif demand for crops such as paddy, maize and pulses.
“Several measures were discussed to diversify sources of imports required by chemicals, pharmaceuticals, petrochemicals and other industrial sectors. Similarly, new export destinations to promote Indian goods will be developed in the near future,” the PMO statement said.
India has diverted gas from industrial sectors such as petrochemicals, chemicals, pharmaceuticals, and power generation to support city gas distribution.
Supplies of key starting materials (KSMs), drug intermediates, and active pharmaceutical ingredients (APIs) are currently threatened by the West Asia war.
“Several measures proposed by different ministries will be prepared and implemented in the coming days after consultation with all stakeholders,” the PMO statement said.
