The government decided on a range of measures on Sunday to ensure food, fuel and fertiliser security amid disruptions due to the conflict in West Asia, as a meeting chaired by Prime Minister Narendra Modi unveiled immediate and long-term steps to ensure the availability of fuel and diversification of imports of fertilisers and other essential needs. Modi convened a meeting of the Cabinet Committee on Security (CCS) as the conflict sparked by Israel and the US’s attacks on Iran entered its fourth week (@narendramodi X)
Modi convened a meeting of the Cabinet Committee on Security (CCS) as the conflict sparked by Israel and the US’s attacks on Iran entered its fourth week, with oil prices rising above $100 a barrel, concerns growing about shortfalls in gas supplies, and countries around the globe bracing for a spike in living costs.
The meeting reviewed “mitigating measures” in the wake of the conflict in West Asia, Modi said on social media. “We had extensive discussions on short-, medium- and long-term measures, including ensuring continued availability of fertilisers for farmers, diversifying import sources for key sectors, promoting exports to new destinations and more,” he said.
The meeting focused on the expected impact of the conflict on sectors such as agriculture, fertilisers, food security, petroleum, power, MSMEs, exporters, shipping, trade, finance and supply chains, and the measures being taken to address the fallout, an official readout said. Cabinet Secretary T V Somanathan made a presentation on the global situation and mitigating measures initiated by all ministries and departments.
With the conflict in West Asia set to have “significant” short-, medium- and long-term impacts on the global economy, the meeting assessed its effect on India and discussed immediate and long-term countermeasures, as well as the overall macroeconomic scenario in the country.
The meeting also made a detailed assessment of the availability of critical needs of the people, including food, energy and fuel security. “Short-term, medium-term and long-term measures to ensure continued availability of essential needs were discussed in detail,” the readout said.
Besides assessing the impact on farmers and their requirement of fertilisers for the Kharif season, the meeting discussed alternative sources to ensure continued availability. “The measures taken in the last few years to maintain adequate stocks of fertilisers will ensure timely availability and food security,” the readout said.
Almost half of global imports of urea and sulphur, a crucial component for fertilisers, come from West Asian countries, and the blocking of the Strait of Hormuz has already disrupted the supply of critical raw materials for the fertiliser sector, such as ammonia, LNG, diammonium phosphate (DAP), and potash.
The meeting decided to maintain adequate coal stocks at all power plants to “ensure no shortage of electricity” across the country. It also discussed measures to diversify sources of imports required by the chemicals, pharmaceuticals, petrochemicals and other industrial sectors. “Similarly, new export destinations to promote Indian goods will be developed in the near future,” the readout said.
Several measures proposed by different ministries will be prepared and implemented in the coming days after consultation with all stakeholders, the readout said, without giving details.
Modi ordered the creation of a group of ministers and secretaries to “work dedicatedly in a whole-of-government approach”, and instructed sectoral groups to work in consultation with all stakeholders.
The Prime Minister said the conflict is an “evolving situation and the entire world is affected in some form”. In such a situation, all efforts must be made to safeguard citizens from the impact of this conflict. He instructed that all “arms of government should work together to ensure least inconvenience to the citizens”, and sought proper coordination with state governments to prevent black marketing and hoarding of essential commodities.
“We are committed to safeguarding our citizens from the impact of the conflict,” Modi said in a social media post.
Earlier in the day, a government update on key sectors amid the West Asia conflict said that the supply of LPG is “still a concern in view of [the] prevailing geopolitical situation”, though there are “adequate crude inventories in place” with all refineries operating at high capacity. The country is maintaining sufficient stocks of petrol and diesel, and priority sectors have been protected for natural gas supplies.
India has criticised all attacks on critical infrastructure, including energy facilities, in West Asia in recent days. Modi condemned attacks on critical infrastructure in West Asia that disrupt supply chains and stressed that shipping lanes should be kept open during a phone conversation with Iranian President Masoud Pezeshkian on Saturday.
The Indian side has focused on New Delhi’s key concerns—the closure of the Strait of Hormuz disrupting merchant shipping, attacks on energy infrastructure affecting supplies, and the safety of 10 million Indians in West Asia—during its outreach to the leadership of members of the Gulf Cooperation Council and Iran.