Yara reduces some ammonia, urea production in India over lower gas availability
March 18 (Reuters) - Yara YAR.OL has reduced parts of its ammonia and urea production in India due to limited gas availability, the Norwegian fertilizer group told Reuters on Wednesday.
Yara's reduced production in India has little impact on the group's overall financial results, it said in an emailed statement.
"Because fertilizer prices in India are regulated and heavily subsidized, our margins there remain relatively stable and are not linked to global nitrogen prices," it added.
The company is currently not considering a reduction in its European production.
So far, urea prices have increased in line with, or more than, gas prices, which means that upgrading from gas to nitrogen still provides positive margins in Europe.
The group said it was increasingly worried about stability of global fertilizer supply and farmers' ability to afford the necessary nutrients to produce at full potential, following the escalating war in the Middle East.
