Report Description

Forecast Period

2025-2029

Market Size (2023)

41.86 MMT

CAGR (2024-2029)

4.85%

Fastest Growing Segment

Grains & Cereals

Largest Market

West India

 

Market Overview

India Fertilizers Market has reached reach 41.86 MMT by 2023 and is anticipated to project robust growth in the forecast period with a CAGR of 4.85% through 2029. India's strong agricultural sector, driven by government initiatives to promote fertilizer use, is playing a pivotal role in fueling the nation's growth. With diverse climatic conditions and vast arable land, India is well-suited for cultivating a wide variety of crops, resulting in a substantial demand for fertilizers.

Moreover, India's vision for self-sufficiency and the 'Make in India' initiative are actively encouraging domestic production. To support this, companies are adopting various strategies such as backward integration of production processes. This approach empowers them to have complete control over every aspect of the production cycle, starting from sourcing raw materials to manufacturing the final product.

In conclusion, the Indian fertilizer market is experiencing a steady growth trajectory, thanks to the country's unwavering focus on agricultural self-sufficiency, the increasing emphasis on domestic production, and the ever-growing demand for food. As India continues to strengthen its agricultural sector, the fertilizer market is poised to play an increasingly pivotal role in the country's economy, contributing to sustainable growth and food security.

Key Market Drivers

Growth in Agriculture Industry

Agriculture plays a vital role in India's economy, acting as a cornerstone for employment and making significant contributions to the country's GDP. With its diverse climatic conditions and vast arable land, India possesses immense potential for cultivating a wide variety of crops. This abundance has led to an increased demand for fertilizers, driving the growth of the industry to even greater heights.

One of the primary drivers of the India fertilizers market is the declining fertility of its soil. Over the years, intensive farming practices have caused significant nutrient depletion in the soil, necessitating the use of fertilizers to replenish these essential elements and improve overall soil health. This concern for maintaining soil fertility has created a strong demand for fertilizers, further propelling the growth of the market.

India's relentless pursuit of achieving self-sufficiency in food production is also a significant factor driving the expansion of the fertilizers market. The government has implemented a range of strategies, including the promotion of fertilizer use and the provision of subsidies to farmers, to encourage the adoption of these products and support the agricultural sector. These initiatives have not only fueled the growth of the market but have also reinforced India's commitment to strengthening its agricultural industry.

Moreover, the rapid advancements in technology have revolutionized the agricultural landscape in India. The emergence of agtech has presented new opportunities for improving productivity and efficiency within the sector. This includes the implementation of precision farming techniques that optimize the precise use of fertilizers, further stimulating the demand for these essential products.

In conclusion, the growth of the agriculture industry in India serves as a major driving force behind the expansion of the fertilizers market. The pressing issue of decreasing soil fertility, combined with India's unwavering focus on achieving self-sufficiency in food production, the advent of transformative agtech solutions, and the ever-increasing demand for food, all contribute to the remarkable growth of this market. As India continues to prioritize and invest in the development of its agricultural sector, the fertilizers market is expected to witness sustained and prosperous growth in the years to come.

Surge in Technological Advancements

Technological advancements have revolutionized the fertilizer industry, leading to the development of highly efficient and cost-effective methods for extraction and processing. With future scenarios indicating a significant rise in competition for key feedstock like ammonia, the industry is proactively devising new strategies to ensure sustainability.

One of the groundbreaking innovations in this field is the introduction of smart fertilizers. These fertilizers have the ability to release nutrients in response to the specific nutritional needs of a particular crop. By doing so, they greatly enhance nutrient use efficiency and minimize nutrient loss, resulting in improved yields and reduced environmental impact.

These advancements in the fertilizer industry are significantly driving the growth of the Indian fertilizer market As the demand for. As the demand for high-quality and sustainable fertilizers continues to rise, the industry is poised for further expansion and innovation.


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Key Market Challenges

Complexities Associated with Soil Health and Nutrient Management

Soil health is of utmost importance in agriculture as it directly influences both crop yield and quality. However, the degradation of soil caused by human activities poses a severe threat to soil health in India. This degradation is primarily a result of inappropriate agricultural practices, mismanagement of industrial effluents, and deforestation.

One particular concern is the excessive use of chemical fertilizers, which has led to environmental losses of Nitrogen (Nr). This not only affects the quality of air, soils, and freshwaters but also poses a serious challenge to sustainable agriculture. Additionally, the imbalanced application of fertilizers, which is commonly observed across South Asia, further exacerbates the issue.

Nutrient management is another significant challenge faced by the Indian fertilizer market. Researchers are actively working on developing practices that enhance soil health and minimize nutrient losses. However, the implementation of these practices at a large scale remains a daunting task.

Furthermore, current research indicates that site-specific nutrient management, a concept that tailors fertilizer application to the specific needs of individual fields, faces significant scaling challenges in Indian agriculture. The complexity of implementing such personalized strategies on a larger scale can be overwhelming, further complicating efforts in nutrient management.

In summary, the need for sustainable soil management practices in India is crucial to ensure long-term agricultural productivity. Addressing the challenges of soil degradation, nutrient management, and scaling personalized strategies will require collaborative efforts from researchers, policymakers, and stakeholders in the agricultural sector.

Key Market Trends

Growing Demand of Organic and Bio-Fertilizers

The growth of organic and bio-fertilizers can be attributed to their widespread use in both organic and conventional farming. This shift is driven by the increasing awareness about the harmful effects of synthetic fertilizers on soil health and the environment.

Several factors are contributing to this trend. Firstly, the long-term use of chemical fertilizers has led to decreasing soil fertility, prompting farmers to seek alternative solutions such as organic and bio-fertilizers. Secondly, there is a growing consumer preference for organic food, which is pushing farmers to adopt organic farming practices that rely on these types of fertilizers. Thirdly, government initiatives promoting sustainable farming practices are also playing a significant role in driving the demand for organic and bio-fertilizers in the market.

In conclusion, the growing demand for organic and bio-fertilizers is a significant and ongoing trend in India's fertilizer market. As the country continues to prioritize sustainable farming practices, this trend is expected to strengthen even further, reshaping the landscape of the Indian fertilizer industry, and contributing to a more environmentally friendly and sustainable agricultural sector.

Segmental Insights

Crop Type Insights

Based on the category of crop type, the grains & cereals segment emerged as the dominant player in the Indian market for fertilizers in 2023. In India, grains and cereals like rice, wheat, and maize are not only staple food crops but also deeply ingrained in the cultural and culinary heritage of the country. From the fragrant basmati rice of the northern regions to the fluffy idlis made from fermented rice batter in the south, these grains are celebrated in diverse regional cuisines. With a rich history of agriculture, these crops have been cultivated for centuries, adapting to the unique soil and climate conditions of different regions.

The cultivation of grains and cereals in India is a fascinating blend of traditional farming practices and modern techniques. Farmers employ a variety of methods, from organic farming to mechanized agriculture, to ensure optimal yield and quality. The use of hybrid seeds, precision farming techniques, and efficient irrigation systems has significantly contributed to the increased productivity of these crops.

Beyond their importance in the domestic market, Indian grains and cereals also make a significant contribution to the global food supply. India is one of the largest producers and exporters of rice, wheat, and maize, meeting the demands of not only its own population but also those of other countries. The export of these crops not only brings economic benefits but also fosters international trade and strengthens global food security.

The Indian government recognizes the critical role of fertilizers in supporting the growth of grains and cereals. In addition to subsidies, the government has implemented various schemes and programs to promote sustainable agriculture practices and reduce the environmental impact of fertilizer use. These initiatives aim to strike a balance between meeting the growing demand for food and ensuring the long-term sustainability of agricultural systems.

As India continues to evolve and embrace technological advancements, the agriculture sector is also undergoing a transformation. The adoption of digital technologies and precision agriculture tools holds the promise of further optimizing crop production and resource management. This, in turn, will contribute to the continued growth and resilience of the grains and cereals sector in India.

Mode of Application Insights

The foliar spraying segment is projected to experience rapid growth during the forecast period. Foliar sprays are highly regarded for their exceptional responsiveness and remarkable ability to enhance crop yield and quality. By delivering essential nutrients directly to the plant through the leaves, bypassing the soil, these sprays facilitate faster absorption, resulting in rapid nutrient uptake. This expedited nutrient assimilation not only addresses deficiencies promptly but also promotes the cultivation of healthier crops, ultimately leading to higher yields.

In addition to their nutritional benefits, foliar sprays have proven to be an effective means of disease control. They can be formulated with fungicides or other disease control agents, providing a dual advantage of nourishment and protection. This dual action makes foliar sprays an appealing choice for farmers who seek to optimize both the health and productivity of their crops.

The escalating focus on sustainable agricultural practices, driven by increasing environmental consciousness, has heightened the demand for environmentally friendly solutions. Foliar fertilizers play a significant role in these sustainable practices by minimizing soil erosion and reducing nutrient runoff. Their targeted approach to fertilization helps reduce the likelihood of over-application and environmental contamination, further contributing to the preservation of our ecosystem.


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Regional Insights

West India emerged as the dominant player in the India Fertilizers Market in 2023, holding the largest market share in terms of value. West India, with states like Maharashtra and Gujarat, is renowned for its rich and diverse agricultural practices, encompassing a wide range of crops. These include staple cereal crops such as rice and wheat, which form the backbone of the region's food production. Additionally, cash crops like cotton and sugarcane thrive in the fertile lands of West India, contributing significantly to the region's economy.

In addition to cereal and cash crops, the region is also a hub for horticultural activities. The favorable climate and fertile soil support the cultivation of a variety of fruits, vegetables, and ornamental plants. From juicy mangoes to vibrant roses, West India offers a kaleidoscope of horticultural delights.

The diversity and intensity of farming in West India create a strong demand for fertilizers, making the region a dominant player in the fertilizer market. To meet this demand, the region hosts several major fertilizer manufacturing units that cater not only to the local needs but also contribute to the national fertilizer production.

Furthermore, West India's well-developed infrastructure plays a vital role in the efficient distribution and usage of fertilizers. The region's extensive network of roads, railways, and ports ensures seamless transportation and accessibility of fertilizers to farmers across the region.

Recognizing the importance of agricultural productivity, the government has been actively implementing initiatives to support farmers in West India. In a significant move, the Indian government revived five fertilizer manufacturing units in 2019, aiming to maximize domestic production and reduce dependence on imports. Such proactive measures not only boost the region's fertilizer market but also contribute to the overall growth and development of agriculture in West India.

In conclusion, West India stands as a powerhouse of agricultural and horticultural activities, driven by its diverse crop cultivation, robust fertilizer industry, efficient infrastructure, and government support. The region's contribution to the agricultural sector is instrumental in ensuring food security, economic growth, and sustainable development.

Recent Developments

  • In June 2022, ICL, a global leader in specialty minerals and chemicals, signed a long-term agreement with India Potash Limited (IPL) to supply Polysulphate, a multi-nutrient fertilizer, through 2026. This five-year partnership will involve the delivery of an aggregate amount of 1 million metric tons of Polysulphate, which is expected to play a crucial role in boosting the Government of India's organic agriculture program. Polysulphate, known for its balanced composition of macro and micronutrients, will help enhance soil fertility and promote sustainable crop growth.
  • In May 2022, Building on its commitment to global agricultural development, ICL has signed Framework agreements with customers in India and China. Under these agreements, ICL will supply 600,000 metric tons of potash to its Indian customers and 700,000 metric tons of potash to its Chinese customers in 2022. This strategic partnership will support the agricultural sectors of both countries, ensuring a steady supply of essential nutrients for crop production. The potash will be supplied at a competitive price of 590 USD per ton, further contributing to the economic viability of agriculture in these regions.
  • In February 2022, ICL, renowned for its innovative solutions, introduced a range of lawn care fertilizers designed to enhance the health and appearance of lawns. These fertilizers incorporate advanced technologies to provide optimal nourishment to the grass. One variant includes urea coated with sulfur and a biodegradable polymer membrane (Poly-S), which releases nutrients gradually, preventing uncontrolled shock growth and reducing the need for frequent mowing. Another variant combines resin-coated nitrogen with phosphorus and potash (PACE), ensuring a balanced nutrient supply for sustained lawn growth. Both fertilizers are easy and safe to use, making them suitable for robotic lawnmowers. With these cutting-edge fertilizers, lawn maintenance becomes effortless, allowing homeowners to enjoy lush, vibrant lawns throughout the year.

Key Market Players

  • Indian Farmers Fertiliser Cooperative Limited (IFFCO)
  • Rashtriya Chemicals and Fertilizers Limited
  • Coromandel International Limited
  • Tata Chemicals Limited
  • Gujarat Narmada Valley Fertilizers & Chemicals Limited

By Crop Type

 By Mode of Application

By Region

  • Grains & Cereals
  • Pulses & Oilseeds
  • Commercial Crops
  • Fruits & Vegetables
  • Others
  • Foliar Spraying
  • Fertigation
  • Sowing
  • Drip Method
  • Others
  • North India
  • East India
  • West India
  • South India

 

Report Scope:

In this report, the India Fertilizers Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

  • India Fertilizers Market, By Crop Type:

o   Grains & Cereals

o   Pulses & Oilseeds

o   Commercial Crops

o   Fruits & Vegetables

o   Others

  • India Fertilizers Market, By Mode of Application:

o   Foliar Spraying

o   Fertigation

o   Sowing

o   Drip Method

o   Others

  • India Fertilizers Market, By Region:

o   North India

o   East India

o   West India

o   South India

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the India Fertilizers Market.

Available Customizations:

India Fertilizers Market report with the given market data, Tech Sci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

  • Detailed analysis and profiling of additional market players (up to five).

India Fertilizers Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected] 


Table of content

1.    Product Overview

1.1.  Market Definition

1.2.  Scope of the Market

1.2.1.    Markets Covered

1.2.2.    Years Considered for Study

1.2.3.    Key Market Segmentations

2.    Research Methodology

2.1.  Objective of the Study

2.2.  Baseline Methodology

2.3.  Key Industry Partners

2.4.  Major Association and Secondary Applications

2.5.  Forecasting Methodology

2.6.  Data Triangulation & Validation

2.7.  Assumptions and Limitations

3.    Executive Summary

3.1.  Overview of the Market

3.2.  Overview of Key Market Segmentations

3.3.  Overview of Key Market Players

3.4.  Overview of Key Regions/Countries

3.5.  Overview of Market Drivers, Challenges, Trends

4.    India Fertilizers Market Outlook

4.1.  Market Size & Forecast

4.1.1.     By Value

4.2.  Market Share & Forecast

4.2.1.     By Crop Type (Grains & Cereals, Pulses & Oilseeds, Commercial Crops, Fruits & Vegetables, Others)

4.2.2.     By Mode of Application (Foliar Spraying, Fertigation, Sowing, Drip Method, Others)

4.2.3.     By Region

4.2.4.     By Company (2023)

4.3.  Market Map

4.3.1.     By Crop Type

4.3.2.     By Mode of Application

4.3.3.     By Region

5.    North India Fertilizers Market Outlook

5.1.  Market Size & Forecast       

5.1.1.By Value

5.2.  Market Share & Forecast

5.2.1.     By Crop Type

5.2.2.     By Mode of Application

5.2.3.     By State (Top 3 States)

6.    South India Fertilizers Market Outlook

6.1.  Market Size & Forecast       

6.1.1.By Value

6.2.  Market Share & Forecast

6.2.1.     By Crop Type

6.2.2.     By Mode of Application

6.2.3.     By State (Top 3 States)

7.    West India Fertilizers Market Outlook

7.1.  Market Size & Forecast       

7.1.1.By Value

7.2.  Market Share & Forecast

7.2.1.     By Crop Type

7.2.2.     By Mode of Application

7.2.3.     By State (Top 3 States)

8.    East India Fertilizers Market Outlook

8.1.  Market Size & Forecast       

8.1.1.By Value

8.2.  Market Share & Forecast

8.2.1.     By Crop Type

8.2.2.     By Mode of Application

8.2.3.     By State (Top 3 States)

9.    Market Dynamics

9.1.  Drivers

9.2.  Challenges

10. Market Trends & Developments

10.1.             Recent Developments

10.2.             Product Launches

10.3.             Mergers & Acquisitions

11. Policy & Regulatory Landscape

12. India Economic Profile

13. Competitive Landscape

13.1.         Indian Farmers Fertiliser Cooperative Limited (IFFCO)

13.1.1. Business Overview

13.1.2. Company Snapshot

13.1.3. Products & Services

13.1.4. Current Capacity Analysis

13.1.5. Financials (In case of listed)

13.1.6. Recent Developments

13.1.7. SWOT Analysis

13.2.         Rashtriya Chemicals and Fertilizers Limited

13.3.         Coromandel International Limited

13.4.         Tata Chemicals Limited

13.5.         Gujarat Narmada Valley Fertilizers & Chemicals Limited

14. Strategic Recommendations

15. About us & Disclaimer

Figures and Tables

Frequently asked questions

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The market size of the India Fertilizers Market is estimated to be 41.86 MMT in 2023.

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The foliar spraying segment demonstrated significant dominance in 2023. This is due to its ability to quickly absorb nutrients, control diseases, promote sustainable farming, advance technology, and address food security concerns.

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West India dominated the market with a revenue share in 2023. This can be attributed to diverse agricultural activities, industrialization, supportive government initiatives, and varied climate and soil conditions.

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Growth in agriculture industry and surge in technological advancements are the major drivers for the India Fertilizers Market.

profile

Sakshi Bajaal

Business Consultant
Press Release

India Fertilizers Market to Grow with a CAGR of 4.85% through 2029

Dec, 2023

Growth in research and development activities is expected to drive the India Fertilizers Market growth in the forecast period, 2025-2029.