The Confederation of Indian Industry (CII) has emphasized the need for a unified national approach to address the interconnected issues of fuel, fertiliser, and food scarcity arising from the West Asian crisis. According to CII, these three sectors are closely linked and should be viewed as a collective economic challenge. Chandrajit Banerjee, Director General of CII, highlighted the impact of fuel on fertiliser, fertiliser on food, and the subsequent effects on inflation, fiscal stability, and household well-being.
CII has recommended the adoption of the newly introduced BIS standards for higher ethanol blends, such as E22 to E30, by outlining a clear strategy for their market implementation. The industry body has proposed the rapid introduction of flex-fuel vehicles in states producing ethanol, in conjunction with the establishment of a national framework for long-distance LNG trucking, which includes incentives for vehicles, refuelling infrastructure, and transparent pricing mechanisms.
In the realm of energy sustainability, CII has urged for the acceleration of domestic oil and gas exploration, the expansion of the Strategic Petroleum Reserve, and the diversification of crude oil sources to enhance long-term energy security. Furthermore, CII has advocated for the development of alternative energy sources like coal gasification, methanol blending, bio-CNG, and nuclear power, including Small Modular Reactors (SMRs).
Regarding fertilisers, CII has suggested a gradual shift from traditional subsidy models to a Direct Benefit Transfer (DBT) system for farmers, leveraging digital platforms such as rural banking networks, mobile authentication, and soil health databases. The industry body has proposed the integration of urea into the Nutrient Based Subsidy (NBS) framework to rectify pricing imbalances and promote sustainable soil health management practices.
In addressing food inflation, CII has recommended timely releases of onion and tomato buffers through the Price Stabilisation Fund, crackdowns on hoarding activities, targeted transport assistance, pre-positioning of cold-chain infrastructure, and the expansion of direct farmer-to-consumer markets. Additionally, CII commended the government’s prompt actions that shielded consumers from initial fuel price surges and directed gas supplies towards critical sectors.
