New Delhi, March 26 -- India's domestic fertilizer production may face a contraction as the West Asia war threatens to choke the supply of raw materials, according to a new report by Crisil Ratings. Urea and other nutrient output could plunge by as much as 15% if maritime and diplomatic disruptions in the region persist for three months.

The supply crunch hits at a tough time for the world's most populous nation, which relies on West Asia for 40% of its fertilizer imports. With domestic manufacturing units facing a shortage of liquefied natural gas (LNG) and ammonia, 80% of which is sourced from the conflict-prone region, capacity utilization is expected to fall, hurting the efficiency and bottom lines of major producers.

To prevent a d...