India Fertilizer Market to Grow at a CAGR of 4.3% During 2024-2032, Aided by Advancements in Agricultural Techniques

Advancements in agricultural technology, such as precision farming, are significantly transforming the market. Farmers can now apply fertilizers with precision based on distinct soil characteristics and crop requirements, decreasing waste, and optimising efficiency. Furthermore, the development of innovative fertilizers like controlled-release fertilizers, that permit gradual nutrient discharge, ultimately encouraging improved nutrient uptake by plants while mitigating environmental effects, is supporting the market.

Recent technological advancements have not only enhanced fertilizer effectiveness but also supported more sustainable agricultural practices. These improvements make fertilizers more appealing to farmers while also driving increased demand. The incorporation of drone technology allows for the precise identification of areas requiring fertilizer application. This optimisation of use minimises environmental impact while empowering farmers to allocate resources efficiently.

The urea subsidy budget for fiscal year 2023–2024 is approximately USD 15.6 billion, representing a 14.9% decrease from the previous fiscal year's subsidy amount of approximately USD 17.8 billion. The total nutrient-based subsidy budget for phosphorus and potassium fertilizers of the same year is approximately USD 5.3 billion, which is a 38% decrease from the subsidy budget of the prior fiscal year of approximately USD 11.4 billion.

Further, government policies play a crucial role in shaping the fertilizer market growth. The government of India actively supports farmers through financial assistance and incentives to adopt improved agricultural methods incorporating fertilizer use. Subsidies serve to reduce input costs for farmers, making fertilizers more accessible and affordable. This allows for greater agricultural productivity, higher food output, and strengthened food security across India.

In February 2023, Coromandel International Ltd (NSE: COROMANDEL), an Indian agricultural solutions provider, developed a novel nanotechnology-based fertilizer called Nano DAP through its research and development collaboration with the Indian Institute of Technology Bombay. Nano DAP has the potential to significantly advance the sustainability of Indian agriculture by improving nutrient uptake in crops, reducing water consumption, and minimising environmental losses. The use of Nano DAP is expected to enhance the economic viability of farms through increased yields and lower input costs.

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Market Breakup by Type, Product, Formulation, Application, and Region:

• On the basis of the type, the market is bifurcated into chemical fertilizer and biofertilizer.

• The market is segmented based on product into nitrogenous fertilizers, phosphatic fertilizers, potash fertilizers, and complex fertilizers, among others.

• By formulation, the market is segmented into liquid and dry.

• Based on application, the market can be divided into grains and cereals, pulses and oilseeds, commercial crops, and fruits and vegetables, among others.

• By region, the Indian market for fertilizer can be categorised into North India, East and Central India, West India, and South India.

Key Findings of the Report:

• The Indian fertilizer market expansion is principally driven by substantial growth of the farming industry. Concurrently, population increases, swift urbanisation, and rising food demand are surging fertilizer adoption to boost agricultural productivity and augment average crop yields per hectare.

• Rising rural incomes and increased access to credit facilities represent another key driver of the market growth. Higher disposable earnings are encouraging farmers to invest in fertilizers to boost agricultural output, further fueling the expansion of the market. Growing financial resources available to those in rural communities, coupled with a greater ability to obtain loans, underpin additional spending on goods like fertilizers. This spending, in turn, serves to augment agricultural production across the country.

• In addition, various government and non-governmental organizations (NGOs) are raising awareness among farmers through initiatives and educating them on the advantages of utilizing fertilizers, thereby accelerating the market expansion. Concurrently, promotional activities through television, radio, and tailored rural workshops are also contributing to increased fertilizer usage throughout the country.

Figure: Trend in Production of Fertilizers (In Lakh Metric Tons)

Key Offerings of the Report:

• The EMR report gives an overview of the India fertilizer market for the periods (2018-2023) and (2024-2032).

• The report also offers historical (2018-2023) and forecast (2024-2032) market information for the types, products, formulations, applications, and major regions of fertilizers in India.

• It assesses the regional price trends for the (2018-2023) and (2024-2032) periods.

• The market report also analyses the trade data by covering the major importing and exporting countries.

• The report analyses the market dynamics, covering the key demand and price indicators in the market, trade data analysis, along with providing an assessment of the SWOT and Porter’s Five Forces models.

The major players in the Indian fertilizer market are Coromandel International Limited, Chambal Fertilisers and Chemicals Ltd, Gujarat Narmada Valley Fertilizers and Chemicals Ltd, Indian Farmers Fertiliser Cooperative Limited (IFFCO), Rama Phosphates Limited, ICL Group Ltd, The Fertilisers and Chemicals Travancore Limited (FACT), Deepak Fertilizers & Petrochemicals Corporation Ltd., Gujarat State Fertilizers & Chemicals Limited, Rashtriya Chemicals and Fertilizers Limited (RCFL), National Fertilizers Ltd., and Southern Petrochemical Industries Corporation Ltd, among others. The comprehensive report by EMR looks into the market share, capacity, and latest developments like mergers and acquisitions, plant turnarounds, and capacity expansions of the major players.

Key Highlights of the Report

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