GNFC has been getting Indian Coal under the ambit of Fuel Supply Agreement (FSA) with M/s South Eastern Coalfields Limited (SECL) a subsidiary of Coal India Limited (CIL). FSA between GNFC and SECL is renewed w.e.f. 01-05-2023 and valid up to 30-04-2028. Annual Contracted Quantity (ACQ) is 2,20,000 MT.
Indian Coal is being utilized for the production of Urea Fertilizer. For the requirement of Coal towards balance plants, Imported Coal is being procured through competitive bidding followed by Reverse Auction / negotiation.
Benzene and Toluene are being procured on Import Price Parity basis. During the FY 2025-26, the annual average purchase rate of Benzene reduced from Rs. 88,151/- to Rs. 65,822/- (25.33%) and the annual average purchase rate of Toluene decreased from Rs. 83,363/- to Rs. 72,875/- (12.58%) PMT as compared to FY 2024- 25, on Net of Credit basis.
Currently, the commodity prices are highly volatile. It is anticipated that, the prices will remain volatile during 2026-27 till global business stability established. As a result, it is expected that aromatic market will remain unpredictable during FY 2026-27. Exchange rate for INR / USD is also one of the concern/s.
Considering above points of view, an annualized average prices of both Benzene and Toluene are expected to remain volatile during FY 2026-27.
Rock Phosphate
Phosphoric Acid prices:
During FY-2024-25 Phosphoric Acid prices were in the range of USD 948 – 1050 PMT. During FY 2025-26 it is increased in the range of USD 1153 – 1290 PMT. Phosphoric Acid prices for Apr-June-2026 is declared as USD 1,360 PMT.
Prices of Jordan origin Rock Phosphate 73/75 BPL grade is having increasing trend since April-2025. Due to geo-political disturbances in Middle East, a sharp escalation in prices is anticipated. The new prices will be applicable from June 2026 onwards.
Since November 2023, geopolitical disturbances in the Red Sea region have significantly impacted global shipping routes and freight economics. The situation further deteriorated from March 2026 due to escalating tensions involving the US, Israel, and Iran, leading to the Red Sea being categorized as a High-Risk Area. Consequently, there has been a substantial increase in marine insurance premiums and ocean freight rates, adversely affecting overall landed cost of Rock Phosphate.
Natural Gas:
Our total natural gas requirement for Urea production is tied up till December 2027. Any short fall in natural gas for Urea production is mitigated by submitting our deficit gas requirement to EPMC (pooling for Urea gas) or by floating spot tenders. Presently, due to Geo-political tension, the Gas supply of Urea Manufacturing units are being managed by pool operator, GAIL.
Total gas requirement for industrial products is being met by floating monthly spot tenders and/or through contract finalization on competitive bidding for Short or Medium term basis.
50 Annual Report 2025-2026 | 017