Dublin, Jan. 16, 2025 (GLOBE NEWSWIRE) — The “India Fertilizer Market and Volume Forecast Report by Fertilizers, Sector, States, Company Analysis 2025-2033” report has been added to ResearchAndMarkets.com’s offering.
The fertilizer market in India is expected to grow from US$ 43.54 billion in 2024 to reach US$ 74.06 billion by 2033, with a CAGR of 6.08% during the period from 2025 to 2033
Increasing productivity in agriculture, subsidies provided by the government, and the increasing demand for wheat, rice, and vegetables are some of the reasons behind this growth. Another reason is the growing shift towards sustainable farming practices such as bio-fertilizers and balanced nutrient management.
Key Players Companies are faced with many techniques and tasks to remain aggressive and meet the changing needs of the agriculture sector. They are expanding their product services by offering a few fertilizers customized to various crop types and soil conditions. This includes the formulation of specialty fertilizers, micronutrient-enriched formulations, and natural/bio-fertilizers to meet the growing demand for sustainable and customized agricultural solutions.
The major companies in the Indian fertilizer market are Nagarjuna Fertilizers and Chemicals Ltd, Chambal Fertilisers & Chemicals Ltd, Rashtriya Chemicals & Fertilizers Limited, National Fertilizers ltd, and Coromandel International Ltd.
Government Subsidies and Support
Government subsidies are the growth drivers in the Indian fertilizer market. The Indian Government offers subsidies on fertilizers such as urea, DAP, and NPK, which make them cheaper for farmers. This subsidy promotes the steady usage of fertilizers, and crop yields are enhanced while food security is guaranteed.
In addition, the Government has initiated several programs of efficient fertilizer use, such as soil health management programs and nutrient-based subsidies. Such support is needed to enhance agricultural productivity particularly in key crops like rice and wheat, which, in turn, contributes to the overall market expansion. Under the NBS scheme, fertilizer companies set MRP based on market dynamics; the government monitors.
Increased Agricultural Demand and Productivity
The rising demand for agriculture in India due to an increasing population and change in dietary habits enhances the demand for fertilizers. To meet the demand for food grains, fruits, and vegetables, farmers require an increase in productivity; therefore, fertilizers become a necessity. With changing cropping patterns and the need for high-yield varieties, fertilizers help increase crop output and maintain soil fertility.
The demand for efficient farming practices, including the use of fertilizers, is increasing, particularly in regions like Punjab, Uttar Pradesh, and Maharashtra, where agricultural output is vital for national consumption and exports. India’s population will reach 1.5 billion by the end of this decade and slowly go on to increase up until 2064 when it will peak at 1.7 billion.
With India’s population growing at such a rapid rate, there is a massive and growing demand for agricultural products to feed the larger population, making agriculture a very important sector for the food security of the country; this means that as more people live in India, the need for food produced through agriculture also rises considerably.
Growing Awareness of Sustainable Agriculture
The increasing focus on sustainable agriculture is another major driver for the Indian fertilizer market. As the awareness of environmental implications of chemical fertilizers grows, there is a shift towards bio-fertilizers and organic farming. Farmers are adopting eco-friendly practices to reduce soil degradation and improve long-term fertility.
The government promotes balanced fertilization and encourages the use of organic and natural alternatives along with chemical fertilizers. This shift toward sustainable farming practices, along with the requirement of efficient nutrient management, is fueling the growth of the fertilizer market while keeping in mind the stewardship of the environment.
Issues in the Indian fertilizer market
Excessive use of Chemical Fertilizers
One of the key issues facing the Indian fertilizer market is the excessive use of chemical fertilizers, which creates soil degradation and long-term environmental damage. Excessive use of nitrogen, phosphorus, and potassium-based fertilizers results in soil imbalances, a decrease in organic matter, and the contamination of water resources.
This reliance on chemical fertilizers further lowers the fertility of soil gradually, forcing farmers to increasingly rely on external inputs. India supports balanced fertilization and advocates the use of bio-fertilizers and organic fertilizers for restoration of health in the soil and the sustainable practices in agriculture.
Rising Fertilizer Prices and Availability Issues
Another significant challenge is the rising cost of fertilizers and periodic availability issues. Despite government subsidies, the prices of raw materials and fertilizers have been increasing, placing a financial burden on farmers, particularly small-scale ones. Also, distribution inefficiencies, especially in remote areas, disrupt the supply chain and delay fertilizer availability during peak farming seasons. These issues hinder timely application, affecting crop yields. While the Government has taken steps to ensure availability, rising global fertilizer prices and logistical challenges continue to disrupt the market, threatening food security and agricultural productivity.
Indian Urea Fertilizers Market
Urea fertilizers are forecasted to remain the market and volume leader in India. This is because it is a major source of nitrogen supply and is essential to increase crop yield, in line with the country’s predominantly nitrogen-poor soils. Government subsidies on urea make it cost-effective for farmers, expanding its sizeable usage. Also, the simplicity of application and standard compatibility with various plants contribute to its recognition. India’s fertilizer market uses urea due to a focal point on food security and sustainable agriculture. It remains the most widely used and holds an adequate market and volume portion.
India Cooperative Fertilizer Market
The cooperative sector is likely to lead the Indian fertilizer market during the forecast period. Cooperatives may be crucial for the distribution of fertilizers to farmers, as it can utilize its vast network and direct outreach to the rural areas. With government help and subsidies, cooperatives offer fertilizers at discounted rates, which makes it easier for small and marginal farmers. Cooperative societies also frequently focus on farmers’ welfare and offer extension services, which increases its reliability and credibility. The cooperative quarter is well positioned to retain a significant share of the Indian fertilizer market.
Uttar Pradesh Fertilizer Market
Uttar Pradesh is likely to be the fastest-growing state in the India fertilizers market. This is because of its vast agricultural land and large farming community. Uttar Pradesh has high fertilizer demand to support crop cultivation. The country authorities’ awareness of farm development and tasks to better farmer welfare stimulates fertilizer input. In addition, continuing infrastructural improvements and the increased mechanization in farming practices propel the need for fertilizers.
Punjab Fertilizer Market
The Punjab fertilizer market is integral to supporting the state’s agricultural economy, often referred to as India’s breadbasket. High demand in fertilizers such as urea, DAP, and NPK blends spur the growth of the fertilizer market, as farmers work to increase yields of wheat, rice, and vegetables. Subsidies of fertilizers by the government and programs for balanced application of nutrients spur the growth of the market. However, the hurdles include the overuse of chemical fertilizers, degradation of soil, and environmental issues.
Andhra Pradesh Fertilizer Market
Andhra Pradesh fertilizer market forms the backbone of the agro-based industry in this state, particularly in producing rice, maize, pulses, and fruits. Its demand for fertilizers is higher for urea, NPK, and DAP, ensuring improved yields and productivity of crops in this market. Government’s subsidy and its encouragement on rational use of fertilizers add to the market further. Overuse of chemical fertilizers, salination of soil, and degradations in the environmental scenario are still the present issues.
Company Analysis: Overview, Recent Developments, Revenue Analysis
- Nagarjuna Fertilizers and Chemicals Ltd.
- Chambal Fertilisers &Chemicals Ltd.
- Rashtriya Chemicals & Fertilizers Limited
- National Fertilizers Ltd.
- Coromandel International Ltd.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 440 |
| Forecast Period | 2024 – 2033 |
| Estimated Market Value (USD) in 2024 | $43.54 Billion |
| Forecasted Market Value (USD) by 2033 | $74.06 Billion |
| Compound Annual Growth Rate | 6.0% |
| Regions Covered | India |
Key Topics Covered:
1. Introduction
2. Research Methodology
3. Executive Summary
4. Market Dynamics
4.1 Growth Drivers
4.2 Challenges
5. India Fertilizer Market Analysis
6. Share Analysis
6.1 By Fertilizers
6.1.1 Market Share
6.1.2 Volume Share
6.2 By Sector
6.3 By States
7. Fertilizers
7.1 Urea
7.1.1 Market Analysis
7.1.2 Volume Analysis
7.2 DAP
7.3 MOP
7.4 Complex Fertilizers
8. Sector
8.1 Urea
8.1.1 Public Sector
8.1.2 Cooperative Sector
8.1.3 Private Sector
8.2 DAP
8.3 Complex Fertilizers
9. States
9.1 Andhra Pradesh
9.1.1 Urea
9.1.2 DAP
9.1.3 MOP
9.1.4 Complex Fertilizers
9.2 Bihar
9.3 Chhattisgarh
9.4 Gujarat
9.5 Haryana
9.6 Jammu and Kashmir
9.7 Jharkhand
9.8 Karnataka
9.9 Kerala
9.10 Madhya Pradesh
9.11 Maharashtra
9.12 Odisha
9.13 Puducherry
9.14 Punjab
9.15 Rajasthan
9.16 Tamil Nadu
9.17 Telangana
9.18 Uttar Pradesh
9.19 Uttarakhand
9.20 West Bengal
9.21 Others
10. Porter’s Five Forces Analysis
10.1 Bargaining Power of Buyers
10.2 Bargaining Power of Suppliers
10.3 Degree of Rivalry
10.4 Threat of New Entrants
10.5 Threat of Substitutes
11. SWOT Analysis
11.1 Strength
11.2 Weakness
11.3 Opportunity
11.4 Threat
12. Company Analysis
For more information about this report visit https://www.researchandmarkets.com/r/1xcmps
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- Indian Fertilizer Market and Volume
