BHUBANESWAR: With a prolonged conflict in West Asia threatening to squeeze fertiliser and fuel supplies, the state government on Tuesday moved to brace for a possible urea shortage during the ensuing kharif season while keeping a close watch on oil availability and other economic impacts.
Chief secretary Anu Garg on Tuesday held a high-level meeting at Lok Seva Bhawan to assess the impact of the conflict on the state’s economy, with particular focus on fertiliser and fuel availability. Disruptions in shipping routes, officials said, could affect urea supplies at a critical juncture for agriculture, placing the government in a difficult position.
Ensuring adequate availability of urea during the ensuing sowing season to safeguard farmers was taken up as a key priority in the meeting which decided to intensify monitoring of fertiliser use to curb overconsumption and prevent hoarding. These could save up to 25 per cent urea and stretch supplies through June-July, if the Middle East situation continues to be critical, sources informed.
The Agriculture and Farmers’ Empowerment department was asked to submit weekly reports on urea availability for tracking both supply and consumption. It has also been asked to review district-level stocks, seek additional allocation from the Centre if necessary, and look for alternatives such as organic and bio-fertilisers. Officials were cautioned that rising fertiliser prices would have wider implications for agriculture and allied sectors.
The meeting took note that till now there is no shortage of LPG or petrol in the state. However, it was decided to keep a close watch on the availability of industrial fuel including furnace oil, coke and ethanol. It was observed that if there is a shift towards more coal consumption, it will benefit Odisha.
However, Garg emphasised that a prolonged conflict will eventually lead to rise in crude oil prices, supply chain disruptions, increased freight and insurance costs, and currency depreciation, which may have a cascading effect on inflation, current account deficit and overall economic growth.
As a substantial proportion of the state’s exports are linked to West Asia markets, it will affect key sectors such as marine and agricultural produce, processed minerals, chemicals and allied industries. The seafood sector has shown signs of stress due to decline in demand from West Asia countries but since it is the non-catch season, the impact is low.
The meeting discussed the measures undertaken by the Centre to ensure energy security, stabilization of supply chains, export facilitation and risk mitigation for exporters. It was also decided in principle to urge citizens to switch to EVs as alternative mode of transport. Steps will be taken to make available adequate charging infrastructure network to instill confidence among buyers, officials said.
The chief secretary emphasised the need for continuous review and monitoring of the evolving situation and directed all departments to closely track sectoral developments, ensure timely policy interventions, explore alternative markets and supply mechanisms to mitigate the risks.
She also stressed quick roll-out of piped natural gas (PNG) distribution systems, establishment of more LNG terminals in ports to meet future requirements, ramp up coal production to reduce dependence on LPG and other petroleum products. Development commissioner DK Singh and additional chief secretary, Industries department, Hemant Sharma were present.