New Delhi, March 26 -- Supply chain disruptions stemming from the ongoing conflict in the Middle East can potentially impact annual domestic production of both complex fertilisers and urea by 10-15 per cent, according to a report by Crisil Ratings.

Profitability of manufacturers could decline amid lower capacity utilisation due to supply constraints of key raw materials.

The report further noted that the increase in prices of raw materials and imported fertilisers is likely to increase the working capital requirement of players and also raise the subsidy bill of government by Rs 20,000-25,000 crore.

Nevertheless, two factors will support credit profiles - firstly, the strong liquidity of large fertiliser companies and secondly, the gov...