Union Finance Minister Nirmala Sitharaman on Monday warned that fertiliser prices have risen to “unimaginable” levels and said India must closely monitor fuel, fertilisers and foreign exchange.
Her remarks come amid global uncertainty following a month-long conflict involving Iran, the US and Israel, which has now moved into a temporary ceasefire. The situation has affected international crude oil movement, with Iran blocking the Strait of Hormuz, a key sea route for oil transport.
The disruption has led to a sharp shortage of petroleum products globally, including in India. Reflecting the impact, petrol and diesel prices have been raised by Rs 7 per litre each over the past 11 days.
Prime Minister Narendra Modi has appealed to citizens to conserve fuel, avoid foreign travel and refrain from buying gold for a year to help manage the crisis. Speaking at the 37th anniversary event of the Small Industries Development Bank of India (SIDBI) in Mumbai, Sitharaman said the Prime Minister’s call to control foreign exchange outflow is significant and must be followed.
She said the Iran-US conflict is not merely a geopolitical issue, warning of higher fuel costs, delays in cargo movement, increased shipping expenses and shortages of manufactured goods. Sitharaman also said rapidly rising gold prices are creating challenges in external markets, while asserting that the domestic economy remains strong, citing GST collections, rising domestic demand and private investment as indicators. She added that public sector undertakings should clear pending dues of Rs 8.1 lakh crore to micro, small and medium enterprises within 45 days.
