India, a leading global importer of oil and natural gas, ranks among the nations most severely affected by supply chain disruptions following Iran’s closure of the Strait of Hormuz—a move taken in response to attacks by the US and Israel. The blockade has interrupted the flow of natural gas and petrochemical feedstocks, sending ripples through downstream industries.

Within India’s chemical sector, fertilizer producers were the first to feel the impact. Now, manufacturers of specialty chemicals are also facing significant pressure. At the heart of these disruptions is a single essential feedstock: ammonia. This pungent gas serves as a critical input across numerous chemical production processes. India relies heavily on imported ammonia, with the majority sourced from Oman, Saudi Arabia, and Qatar.

On March 16, @Mumbai-based Alkyl Amines Chemicals announced the suspension of methyl and ethyl amines production—along with their derivatives—at three facilities, citing ammonia shortages. In a statement, the company explained that the ongoing conflict has disrupted liquefied natural gas (LNG) supplies, a primary feedstock for ammonia synthesis. As a result, several ammonia suppliers have declared force majeure, halting deliveries.

Another domestic amines producer, Balaji Amines, has also paused operations due to insufficient ammonia availability. In a release, the company noted that the financial and operational consequences of this raw material shortage remain uncertain at this stage.

Ajay Joshi, founder of a consulting firm serving India’s chemical industry, noted that reduced amines output from companies like Alkyl Amines and Balaji Amines could have downstream repercussions for sectors such as agrochemicals, pharmaceuticals, and personal care products—all of which regularly use amine-based intermediates.

“Ammonia is difficult to store; it must be consumed almost immediately upon receipt,” Joshi said. “The majority of India’s ammonia imports transit through the Strait of Hormuz, leaving the supply chain highly exposed.”

Indian agriculture is also bracing for impact. A recent analysis by Joshi’s firm highlighted that domestic fertilizer producers—including Chambal Fertilizers, Deepak Fertilizers, and Gujarat Narmada Valley Fertilizers & Chemicals—face heightened vulnerability due to constrained natural gas and ammonia supplies, both essential for urea production, a key plant nutrient.

According to a March 11 statement from India’s Ministry of Petroleum and Natural Gas, nearly half of the country’s natural gas consumption is met through imports, which have slowed markedly amid the conflict. To safeguard high-priority sectors, the ministry noted that fertilizer plants would receive approximately 70% of their usual supply, while refineries and petrochemical units would face reductions of around 35%.

The Center for Strategic and International Studies (CSIS), a US-based think tank, observed in a recent analysis that these supply constraints are emerging just ahead of India’s monsoon season—a period when fertilizer application typically surges. “Prolonged shipping disruptions could leave Indian farmers facing fertilizer shortages and higher input costs,” CSIS noted. “These pressures extend across the region, with Southeast Asian granular urea prices jumping over 40 percent since the conflict began.”

Against this backdrop, supply reliability for key industrial inputs—including water-soluble polymers, flotation reagents, coagulation agents, and monomer raw materials such as acrylamide—has come under increasing scrutiny. With ammonia-dependent supply chains under strain, downstream sectors reliant on chemical monomers, polymer flocculants, and industrial water treatment chemicals are closely monitoring availability. The current disruptions also highlight potential risks for broader applications, ranging from mineral processing to industrial wastewater treatment, where consistent access to intermediate chemicals is critical.