According to the latest report by IMARC Group, the Indian fertilizer industry is on a strong growth trajectory, with the market size expected to reach Rs 138 crore by 2032 and a compound annual growth rate (CAGR) of 4.2% from 2024 to 2032. This growth highlights the important role of the sector in supporting agricultural productivity and food security in India.
Driven by increasing agricultural demand and strategic government interventions, the Indian fertilizer market size will reach Rs 942.1 crore in 2023. Fertilizer production reached 45.2 million tons in FY2024, reflecting the success of the Fertilizer Ministry’s policies.
India, the world’s second largest producer of fruits and vegetables after China, is supporting the growth of the fertilizer industry. Government initiatives such as direct income support schemes by the central and state governments have also enhanced farmers’ mobility and enhanced their ability to invest in fertilisers. Programs such as PM-KISAN and PM-Garib Kalyan Yojana have been recognized by the United Nations Development Programme for their contribution to food security.
The geopolitical landscape has further affected the Indian fertilizer market. The government has emphasized domestic production of liquid nanourea in an effort to stabilize fertilizer prices. Minister Mansukh Mandaviya has announced plans to increase the number of nanoliquid urea production plants from nine to 13 by 2025. The plants are expected to produce 440 million 500 ml bottles of nanoscale urea and diammonium phosphate.
In line with the Atmanirbhar Bharat Initiative, India’s dependence on fertilizer imports has been significantly reduced. In fiscal year 2024, urea imports fell 7%, diammonium phosphate imports fell 22%, and nitrogen, phosphorus and potassium imports fell 21%. This reduction is an important step towards self-sufficiency and economic resilience.
The government has mandated that 100% neem coating be applied to all subsidized agricultural grade urea to improve nutrient efficiency, increase crop yields and maintain soil health while preventing the diversion of urea for non-agricultural purposes.
India has also emerged as a global leader in nanoscale agricultural inputs, including nano-fertilizers and micronutrients, that contribute to environmental sustainability without compromising crop yields.
The government of India aims to achieve self-sufficiency in urea production by 2025-26 by increasing local nanourea production.
In addition, Paramparagat Krishi Vikas Yojana (PKVY) promotes organic farming by offering Rs 50,000 per hectare over three years, of which INR 31,000 is allocated directly to farmers for organic inputs. The potential market for organic and biofertilizers is about to expand.
Climate change poses significant challenges, with wheat yields projected to decrease by 19.3 percent by 2050 and 40 percent by 2080. To address this, the National Mission for Sustainable Agriculture (NMSA) is implementing strategies to make Indian agriculture more resilient to climate change.
The Government is also focusing on rehabilitating closed fertilizer plants in Tarchel, Ramakuntan, Gorakhpur, Sindri and Balauni, and educating farmers on the balanced use of fertilizers, crop productivity and the benefits of cost-effective subsidized fertilizers.
Post time: Jun-03-2024