CII urges integrated policy on fuel, fertiliser, and food amid West Asia crisis

The Confederation of Indian Industry has called on the government to treat fuel, fertiliser, and food as a single economic challenge as India faces growing pressure from the ongoing West Asia crisis.

CII said disruptions linked to the conflict and risks around the Strait of Hormuz threaten multiple sectors simultaneously because India depends heavily on imports for energy and fertiliser supplies.

According to the industry body, India imports 88 per cent of its crude oil, 90 per cent of phosphates, and 25 per cent of urea, with a significant share passing through the Strait of Hormuz.

CII Director General Chandrajit Banerjee said fuel, fertiliser, and food pressures were closely interconnected and should not be addressed separately.

“Fuel feeds into fertiliser, fertiliser feeds into food, and all three feed into inflation, fiscal stress, and household welfare,” Banerjee said.

To address fuel-related risks, CII proposed wider use of higher ethanol blends between E22 and E30, faster deployment of flex-fuel vehicles, expansion of long-haul LNG trucking infrastructure, accelerated domestic oil exploration, and expansion of India’s Strategic Petroleum Reserve.

On fertilisers, the industry body recommended a gradual shift toward a Direct Benefit Transfer subsidy system linked to digitised land records and soil health cards. It also suggested gradually bringing urea under the nutrient-based subsidy regime.

For food security, CII warned that rising fuel and fertiliser costs could increase food inflation. It urged the government to release onion and tomato buffer stocks before the lean season in August and September and strengthen action against hoarding.

Banerjee said India could emerge more resilient if it responded strategically to the current crisis.