Autobayng News Team
India imports about 50-60 per cent of its TGU requirements through hubs in Dubai and Egypt, both affected by the regional conflict.“>
Disruptions in the supply of technical grade urea (TGU) — a key input for producing diesel exhaust fluid (DEF) used in large diesel commercial and passenger vehicles — could severely affect a large part of India’s goods transportation fleet and potentially halt cargo movement nationwide, the domestic automotive industry has warned.Industry body Society of Indian Automobile Manufacturers (SIAM) has told the Centre that supply uncertainties linked to the ongoing Iran war could disrupt the availability of TGU, which is essential for producing DEF required to operate these vehicles.In a March 12 letter to the ministry of chemicals and fertilisers, SIAM said there is “no clear visibility of TGU supplies beyond early April 2026 due to disruptions in Middle East shipping routes, limited operations at regional ports, and rising freight and insurance costs.” ET has reviewed a copy of the letter.The situation has been worsened by volatility in global urea prices, prompting some traders to cancel supply commitments.
India imports about 50-60 per cent of its TGU requirements through hubs in Dubai and Egypt, both affected by the regional conflict.
“It may be noted that all BS-VI commercial vehicles and large diesel passenger vehicles are equipped with a mandatory engine interlock mechanism under which the vehicle cannot operate if DEF levels are exhausted,” SIAM said in the letter. “Any disruption in DEF availability would immobilise a significant portion of the country’s goods transportation fleet, potentially disrupting logistics operations, movement of essential commodities and overall supply chains.”
The industry body has urged the government to direct Gujarat Narmada Valley Fertilisers & Chemicals (GNFC), the country’s sole domestic producer of TGU, to maximise output and prioritise supplies for DEF manufacturing until imports normalise.
In addition to TGU, GNFC also produces fertiliser-grade urea. The company currently allocates 15,000-20,000 tonnes a month for TGU production, depending on agricultural demand. This meets only 40-50 per cent of national requirement, with the rest met through imports.
TGU is a purified form of urea used to produce DEF, which consists of 32.5 per cent TGU blended with deionised water. DEF is injected into the exhaust stream of diesel vehicles equipped with selective catalytic reduction (SCR) systems to convert harmful nitrogen oxides (NOx) into nitrogen and water.Use of DEF is mandatory for all Bharat Stage VI diesel vehicles introduced from April 1, 2020, to meet emission norms.Separately, GNFC earlier this month informed stock exchanges that the supply of regasified liquefied natural gas (RLNG) from GAIL depends on gas received from its suppliers, and that GAIL has issued a force majeure notice.
The company said production of neem urea would be affected but added that manufacturing of other products was not impacted as of March 6 when the disclosure was made.
India’s top gas importer Petronet LNG last week invoked force majeure and cut supplies to buyers such as GAIL due to vessel movement constraints, as tankers were unable to reach the LNG loading terminal at Ras Laffan in Qatar. GAIL is the largest distributor of LNG to urea manufacturers.
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