New Delhi, March 26 -- The supply chain disruptions due to the ongoing Middle East conflict could reduce India's annual domestic production of urea and complex fertilisers by 10-15 per cent. The disruption in availability of key raw materials is also expected to weigh on capacity utilisation and dent profitability across fertiliser manufacturers, said Crisil Ratings in a report.
The constrained supplies of critical inputs such as natural gas, ammonia and phosphoric acid-most of which are imported-could lead to lower plant utilisation levels. This, in turn, may impact operating efficiencies, particularly for urea producers, where profitability is closely linked to energy consumption norms.
Rising input costs are likely to further strain th...