# India Fertilizer Market (2023-2029) --- ## Report Summary Explore the India Fertilizer Market size, forecast, growth drivers, demand trends, competitive landscape and industry outlook across 2020-2031. --- ## India Fertilizer Market Table of Content Table of Content - 1. Executive Summary: India Fertilizer market - 2. Country Profile: India - 2.1. India Country Overview - 2.2. Population Analysis, 2022 - 2.3. Urbanization, 2022 - 3. India Fertilizer Market Overview and Sizing - 3.1. Ecosystem of Major Entities Operating in the India Fertilizer Market - 3.2. Business Lifecycle and Genesis - 3.3. Student Engagement in India Fertilizer Market - 3.4. Value Chain in the Fertilizer Market in India - 3.5. Popular Revenue Models in India's Fertilizer Market - 3.6. India Fertilizer Market Size, 2018-2022 - 4. India Fertilizer Market Segmentation - 4.1. India Fertilizer Market Revenue Segmentation by Product Type, 2022 - 4.2. India Fertilizer Market Revenue Segmentation by Form - 4.3. India Fertilizer Market Revenue Segmentation by Crop Type, 2022 - 4.4. India Fertilizer Market Revenue Segmentation by Distribution Channel, 2022 - 5. Snapshot of India Fertilizer Market - 5.1. Ecosystem and Overview of the Fertilizer Market in India - 5.2. Timeline of Major Fertilizer Companies in India - 5.3. Market Size of Fertilizer Market, By Volume, 2018-2022 - 5.4. Market Size of Fertilizer Market, By Value, 2018-2022 - 5.5. Competition Framework- India Fertilizer Market - 6. Industry Analysis - 6.1. SWOT Analysis of the Fertilizer Market in India - 6.2. Trends and Development in India Fertilizer Market - 6.3. Growth Drivers in India Fertilizer Market - 6.4. Issues and Challenges in India Fertilizer Market - 6.5. Government Initiatives - 6.6. Major Regulatory Bodies in India Fertilizer Market - 7. Future Outlook - 7.1. India Fertilizer Market Size by Revenue, 2022-2029 - 7.2. India Fertilizer Market by Volume, 2022-2029 - 8. Analyst Recommendations - 8.1. Target Market and Offline Marketing - 8.2. Risks and Mitigation Strategies - 8.3. Technological Advancements in India Fertilizer Market - 9. Research Methodology - 9.1. Market Definitions and Assumptions - 9.2. Abbreviations Used - 9.3. Market Sizing Approach - 9.4. Consolidated Research Approach - 9.5. Sample Size Inclusion - 9.6. Limitations and Future Conclusion - 10. Disclaimer - 11. Contact Us --- ## India Fertilizer Market Overview India Fertilizer Market Highlights The India fertilizer market generated INR 889.0 Bn in 2022, growing at a CAGR of 6.00% in the historical period. The market is forecast to reach INR 1,409.3 Bn by 2029, expanding at a CAGR of 7.00% during 2023–2029, supported by structural demand and productivity needs in Indian agriculture. Key growth drivers include rising food demand, ongoing technological advancements in fertilizer production and application, increasing export opportunities, and higher mechanization in agriculture, which typically raises fertilizer intensity and improves distribution efficiency. On the product mix side, NPK fertilizers dominate the non-urea fertilizer segment, holding a 46% market share with a reported output of 9.3 million tonnes (year as provided). From a global positioning standpoint, India ranks third worldwide in overall fertilizer production and second globally in nitrogen fertilizers. Regionally, Gujarat is the largest fertilizer-producing state in India, with an estimated ~14% share of national production. *The revenue of the India fertilizer market amounts to INR 889.0 Bn in 2022 at a CAGR of 6.00%.* --- ## India Fertilizer Market Definition ### Market Definition **Definition of India Fertilizer Market** The market size has been defined as the expected total revenue obtained by domestic sales of all types of fertilizers forms such as Urea and Non-Urea fertilizers (NPK fertilizers, superphosphate, Diammonium Phosphate (DAP), ammonium nitrate and ammonium sulphate). The market size excludes bio-fertilizers such as Blue-Green Algae (BGA), Azolla, Azospirillum, Azotobacter, Mycorrhiza, Phosphate Solubilizing Bacteria, Rhizobium, And Other Fertilizer. The report includes companies such as Coromandel International Limited, Gujarat State Fertilizers & Chemicals Limited (GFSC), National Fertilizers Limited, Rashtriya Chemicals & Fertilizers Limited (RCFL), and Indian Farmers Fertilisers Cooperative (IFFCO). --- ## Taxonomy | ID | Parent ID | Label | | --- | --- | --- | | 1 | | India Fertilizer Market | | 2 | 1 | By Type | | 3 | 2 | Complex | | 4 | 2 | Straight | | 5 | 1 | By Type of Form | | 6 | 5 | Conventional | | 7 | 5 | Speciality | | 8 | 1 | By Type of Application | | 9 | 8 | Fertigation | | 10 | 8 | Foliar | | 11 | 8 | Soil | | 12 | 1 | By Type of Crop | | 13 | 12 | Field Crops | | 14 | 12 | Horticultural Crops | | 15 | 12 | Turf & Ornamental | --- ## India Fertilizer Market Ecosystem ### Market Ecosystem **Ecosystem of India Fertilizer Market** Due to the presence of small-sized enterprises, the fertilizer market in India is highly fragmented. Some of the prominent companies are Coromandel International Limited, Gujarat State Fertilizers & Chemicals Limited (GFSC), National Fertilizers Limited, Rashtriya Chemicals & Fertilizers Limited (RCFL), and Indian Farmers Fertilisers Cooperative (IFFCO). The Ecosystem of India's Fertilizer market encompasses several industries including agriculture companies, agriculture associations, retailers and distributors, regulatory bodies, and research & development organizations. Government bodies such as the Ministry of Chemicals and Fertilizers and the Department of Chemicals & Petrochemicals are the governing body for fertilizer manufacturing in India. --- ## India Fertilizer Market Size, 2018-2023, (In INR Bn) The India fertilizer market expanded from INR 659.9 Bn in 2018 to INR 947.7 Bn in 2023, registering a historical CAGR of 6.00% during 2018–2023. Over this period, the market increased steadily, reaching INR 717.7 Bn in 2019, INR 773.5 Bn in 2020, INR 830.2 Bn in 2021, and INR 887.0 Bn in 2022, before rising further in 2023. This growth has been supported by structural drivers including increasing food demand, ongoing technological advancements in fertilizer production and application, rising export opportunities, and higher mechanization in agriculture, which collectively improve farm productivity and drive fertilizer consumption. --- ## India Fertilizer Industry Market Segmentation ### India Fertilizer Industry Market Segmentation by Product Type Urea: Huge quantities of urea are synthetically manufactured and represent an affordable option for nitrogenous fertilization. Because of the significant government subsidies, it provides farmers with the highest quality nitrogen at the lowest price in the Indian market. The only "controlled fertilizer," meaning the government sets and regulates the amount of nitrogen in urea, which is 46% nitrogen. MRP for Ammonia: Since urea is the most widely utilized fertilizer in India, it makes up over half of the nation's total fertilizer production. Urea is typically sourced domestically; however imports are necessary to meet higher than anticipated demand. Dependency on imports has significantly increased recently. Non- Urea: NPK fertilizers made up the largest amount of all non-urea fertilizers produced in India in FY23, accounting for 46% of the total, with an output of 9.3 million tons. The next highest contributions to India's total production of nonurea fertilizers were made by superphosphate, diammonium phosphate (DAP), ammonium nitrate, and ammonium sulphate, which accounted for 28% (5.6 million tonnes), 22% (4.3 million tonnes), 3% (0.5 million tonnes), and 1% (0.3 million tonnes), respectively. --- ## Market analysis India Fertilizer Market ### India Fertilizer Industry Government Initiatives The Government of India has increased its budget for fertilizers during the fiscal year for the past two years, considering the demands of the industry. However, compared to 2023, the funding allotted for 2024 is smaller due to recent changes in the industry. In 2024 GoI sanctioned an amount of 1.75 lakh crore which is lower than 2.25 lakh crore. There was an increase in the subsidy allocated for nutrients in FY22 compared to FY21. Fertilizer costs have i increased significantly in FY22. In FY22, the Government of India (GOI) enhanced the nonurea fertilizer subsidy to bolster the industry and guarantee that farmers could obtain fertilizers at discounted prices. The Ministry of Chemicals and Fertilizers introduced the Pradhan Mantri Bhartiya Jan Urvarak Pariyojana (PMBJP) initiative in 2022. This program mandates that all fertilizer manufacturers participating in the fertilizer subsidy program adopt a single brand and logo for their products. Bharat is the brand name, and it includes urea, DAP, NPK, and MOP among other fertilizers. ### India Fertilizer Market Growth Drivers **Increasing Food Demand** By 2050, India's population is expected to exceed 1.6 billion people, requiring a significant increase in food production. The current food production is 319 million metric tons as of 2022–2023. However, projections suggest that the nation's food needs would likely be between 490 and 540 million metric tons by 2050, requiring a 171-221 million metric ton increase. The demand growth is unbelievable, which emphasizes how important it is to increase agricultural lands. As a result, fertilizers are increasingly being used to improve soil fertility and increase crop yield because they are essential to supplying India's expanding population with the food it needs. **Technological Advancements** The use of sensors, drones, and data analytics in precision farming techniques is reshaping India's agricultural landscapes through targeted fertilizer application. Fertilizer management has been improved with the distribution of over 225 million cards under the Indian government's Soil Health Card Scheme. Through improved productivity and less fertilizer waste, this program maximizes crop yields and, as a result, raises farmers' total profitability. With projections of $5 billion by 2026, the rapidly expanding drone market in India presents enormous opportunities for the agricultural sector. With their advanced sensing capabilities, drones are being used more and more for precision agriculture applications. This helps farmers monitor and manage their fields precisely, which promotes the sustainable and effective use of fertilizers in Indian agriculture. **Export Opportunities** India has become a major player in the global fertilizer trade thanks to its strong domestic fertilizer production base and well-timed government attempts to boost exports. According to the Union Ministry of Commerce and Industry, India's fertilizer exports increased to USD122 Mn in the fiscal year 2022–2023—a remarkable 48% rise over the previous year. The government has set a goal to make India a net exporter of fertilizers by 2025 in line with this momentum. **Increased Mechanization in Agriculture** The vast use of farm equipment, such as harvesters, planters, and tractors, is changing India's agricultural ecosystem. Tractor sales had an incredible 109.4% increase in the fiscal year 2022–2023 to 58,072 units, up from 27,735 units the year before (FY2021-22). This growth in the use of farm machinery leads to a larger area under cultivation, which helps farmers complete various agricultural tasks more quickly. Furthermore, the growing trend toward mechanization offers the possibility of more accurate fertilizer application, which would maximize resource utilization and raise overall efficiency. The government's dedication to encouraging the usage of technology in agriculture is further demonstrated by programs like the Kisan Drone scheme which further shows the technological advancements in India agriculture market. ### India Fertilizer Market Major Challenges **Raw material availability and pricing** The availability of raw materials and their variable costs present the Indian fertilizer sector with some significant hurdles. The main reasons behind price fluctuations for fertilizers are connected to supply and demand. The absence of natural resources needed to make fertilizers is another problem the nation is facing. **Zero Budget Natural Farming** A collection of agricultural techniques known as Zero zero-budget natural agriculture (ZBNF) involves planting and harvesting plants for nothing. By using this technique, organic farming can get more traction as modern farmers rely heavily on fertilizers and other agrochemicals. This implies that farmers may maintain the healthy growth of their crops without having to buy pesticides and fertilizers. Several States, such as Himachal Pradesh and Andhra Pradesh, have been actively promoting the transition to this model. The chemical fertilizer sector may be at risk because the finance minister advocated for zero-budget farming at the FY20 budget announcement. According to the latest economic report, 1.6 lakh farmers practice natural farming on a zero budget. **Increase in borrowings** Due to financial limitations, the fertilizer business frequently has delays in receiving the full subsidy amount on schedule. This is causing borrowing to rise, which has resulted in a working capital shortfall. There are still about half of the subsidies that need to be paid out by the government. **Inverted Duty Structure** The 18% tax on raw materials like ammonia and naphtha is producing an inverted duty structure, particularly for urea producers. The need for operating capital is being increased by the accumulation of more credit. ### India Fertilizer Market Recent Developments In November 2018, to help farmers accurately fertilize their crops, ICL Fertilizers has created a new line of premium fertilizers. To address the agricultural demand for targeted, balanced nutrition, polyhalite—a mineral produced at the ICL mine in Boulby, UK—is used to manufacture polysulphate, ICLPotashpluS, and ICLPKpluS. The Haifa Group introduced NutriNetTM, an online expert system designed to facilitate and enhance the process of developing personalized fertilization treatments. It helps crops establish free fertilization programs. The Haifa Group presents a unique assortment of coated micronutrients that facilitate comprehensive nutrition throughout the year. The coated micronutrients, which are based on MulticoteTM technology, give your crops all the advantages of controlled release nutrition. In June 2022, In order to supply Polysulphate through 2026, ICL and India Potash Limited (IPL) inked a long-term deal. The five-year period calls for a total of one million metric tons of supply. It is anticipated that the availability of polysulphate will support the Government of India's organic agriculture initiative. --- ## Company Profile of India Fertilizer Market | Year | Company | Description | | --- | --- | --- | | 2004 | Yara International ASA | Yara International ASA engages in the production, distribution, and sales of nitrogen-based mineral fertilizers and related industrial products. Yara Argentina SA, Yara Nipro Pty Ltd, Yara Phosphates OY, and Fertilanos SAS are some of the subsidiaries of Yara International ASA. The company is present in North America, South America, Europe, Africa, Asia, and Oceania. Additionally, it boasts a robust dealer network with over 1,200 outlets. | | 1967 | Indian Farmers Fertiliser Cooperative (IFFCO) | Indian Farmers Fertiliser Cooperative Limited engages in the manufacturing and selling of various fertilizers. Kisan International Trading FZE and Industries Chimiques Du Senegal are the subsidiaries of Indian Farmers Fertiliser Cooperative Limited. IFFCO has a global presence through associates and partners in Southeast Asia, the Middle East, and Europe. | | 1974 | National Fertilizers Limited (NFL) | NFL is engaged in manufacturing neem-coated urea, four strains of biofertilizers (solid and liquid), bentonite sulfur, and other allied industrial products. The company’s brand name is popularly known in the market as “KISAN.” NFL has five gas-based Ammonia-Urea plants, viz. Nangal and Bathinda plants in Punjab, a Panipat plant in Haryana, and two plants at Vijaipur, Madhya Pradesh. Additionally, it boasts a robust dealer network with over 1,200 outlets. | | 1976 | Gujarat Narmada Valley Fertilizers & Chemicals Ltd (GNFC) | Gujarat Narmada Valley Fertilizers & Chemicals Ltd manufactures fertilizers and chemicals. The company also engaged in trading of Di-Ammonium Phosphate (DAP), Muriate of Potash (MOP), Single Super Phosphate (SSP), Ammonium Sulphate. The company’s fertilizer products such as Urea and Nitrophosphates are sold under the brand name of NARMADA. Gujarat, Maharashtra, Madhya Pradesh and certain parts of Rajasthan are prime marketing zones of GNFC. 1,200 outlets. | | 1968 | ICL Group Ltd | ICL Group Ltd engages in the manufacture of mineral based products for the agricultural, food, and engineered material markets. The company’s products include potash and phosphate fertilizers, specialty fertilizers, functional ingredients, flame retardants, and magnesia products. The company is also present in the health and personal care, waste and water treatment, and transportation sectors. Additionally, it boasts a robust dealer network with over 1,200 outlets. | --- ## India Fertilizer Market Future Outlook ### India Fertilizer Market Future Outlook, 2023-2029, (In INR Bn) The India fertilizer market is projected to expand from INR 947.7 Bn in 2023 to INR 1,409.3 Bn by 2029, implying a forecast CAGR of 7.00% during 2023–2029. The market is expected to scale steadily across the period, with estimated values of INR 1,012.5 Bn in 2024, INR 1,087.7 Bn in 2025, INR 1,155.6 Bn in 2026, INR 1,234.7 Bn in 2027, and INR 1,319.1 Bn in 2028, before reaching the 2029 level. Growth is expected to be supported by the shift toward sustainable agriculture practices, evolving global trade dynamics, greater emphasis on climate change mitigation, and rising water scarcity challenges, which collectively increase the need for productivity-enhancing inputs and more efficient nutrient management solutions. --- ## India Fertilizer Market Macro-Economic Indicators ### India Size of Population, (In Million), 2017-2023 India's population was estimated at 1437 million in 2023, increasing by 30 million from 1407 million in 2021. By the end of 2025, India's population is predicted to reach 1500 million. ### Population Based on Age Group in India, (in %), 2010-2025 In the year 2020, The population between the 25-49 age group is the largest age group (36.40%) in India followed by 0-14 (26.40%), 50+ (19.40%), and 15-24 (18%). ### India's GDP, (In USD Bn), 2017-2023 In 2023, India's GDP was valued at USD 3732 billion compared to USD 2710 billion in 2018. The country’s GDP is expected to reach 5000 billion by the end of 2025. ### India Inflation Rate, (In %), 2017-2023 In 2023, India’s Inflation rate stands at 5.66 % an increase of approximately 2.5% from the 2018 inflation rate of 3.94%. During the COVID-19 pandemic in 2020, the inflation rate in India surged unexpectedly to 6.62% from 3.72% in 2019. ### Population of India by Income Class, (in %), 2023 As of 2023, India comprises of majority of the middle-class population which is 57% of the total population of India. After the middle class comes the lower-class category which comprises 33% of the total population of India. The remaining 10% of the population belongs to a high-income class. --- ## Frequently Asked Questions Find quick answers to common questions about the India Fertilizer Market **Q: How big is the India Fertilizer Market?** A: The India Fertilizer market is anticipated to reach INR 947.7 billion in 2023. **Q: What is the future market size of the India Fertilizer Market?** A: The future market size of the India Fertilizer Market is expected to reach INR 1409.3 billion in the forecasted period of 2023-2029 with a CAGR of 7.00%. **Q: Who are the key players in the India Fertilizer market?** A: Coromandel International Limited, Gujarat State Fertilizers & Chemicals Limited (GFSC), National Fertilizers Limited, Rashtriya Chemicals & Fertilizers Limited (RCFL), and Indian Farmers Fertilisers Cooperative (IFFCO) are some of the prominent companies operating in the India Fertilizer market. **Q: What are the growth drivers of the India Fertilizer market?** A: Increasing Food Demand, Technological Advancements, Export Opportunities, and Increased Mechanization in Agriculture are the major growth drivers of the India Fertilizer market. **Q: Which segment is dominating the India Fertilizer market?** A: Urea product type is dominating the India Fertilizer market followed by NPK fertilizers, Single superphosphate (SSP), and others.