India Specialty Fertilizer Market Outlook to 2028

India Specialty Fertilizer Market Overview:

The India specialty fertilizer market was valued USD 1.02 billion in 2023, reflecting a compound annual growth rate (CAGR) of 8% over the period of 2018-23. This growth is driven by increasing awareness among farmers about the benefits of specialty fertilizers, such as enhanced crop yield, improved soil health, and efficient nutrient management.

The key players in India specialty fertilizer market include Coromandel International Limited, Rashtriya Chemicals and Fertilizers Limited (RCF), India Farmers Fertiliser Cooperative Limited (IFFCO), Zuari Agro Chemicals Ltd, and Nagarjuna Fertilizers and Chemicals Limited.

In 2023, Coromandel International Limited announced the launch of a new range of water-soluble fertilizers aimed at improving nutrient absorption efficiency and reducing environmental impact. This development is part of the company's strategy to cater to the growing demand for sustainable agricultural practices.

India Specialty Fertilizer Current Market Analysis:

Specialty fertilizers such as micronutrient-rich blends and bio-fertilizers are gaining traction due to their efficacy in enhancing crop yield and quality. Micronutrient fertilizers, particularly zinc and boron-based formulations, are among the top-selling products due to their role in addressing soil deficiencies and improving plant health.

Digital platforms and mobile applications for agriculture are gaining traction, providing farmers with access to real-time information and resources. In 2023, over 100 million farmers had access to digital platforms, increasing their exposure to specialty fertilizers.

In 2023, Punjab and Haryana, dominated the specialty fertilizer market due to the high adoption rate of advanced agricultural practices and significant investment in high-value crops. These states account for a major part of the total specialty fertilizer consumption in the country also due to high population density.

India Specialty Fertilizer Market Segmentation

By Nutrient Type: The India Specialty Fertilizer market is segmented by nutrient type into micronutrients, bio-fertilizers and macronutrients. In 2023, Micronutrients held a significant position in the India specialty fertilizer market. These fertilizers address specific deficiencies in soil, such as zinc, boron, and manganese, which are crucial for enhancing crop productivity and quality.

By Crop Type: The India Specialty Fertilizer market is segmented by crop type into cereals, fruits & vegetables and pulses & oilseeds. In 2023, the fruits and vegetables segment dominated due to the high value and intensive cultivation practices of these crops, which require precise nutrient management to enhance yield and quality, thus driving the demand for specialty fertilizers.

By Region: The India Specialty Market is segmented by Region into North, South, West and East. In 2023, Northern region dominated the specialty fertilizer market due to advanced agricultural practices, high adoption of precision farming techniques, significant investment in high-value crops like fruits and vegetables, and strong support from agricultural extension services.

India Specialty Fertilizer Market Competitive Landscape

Company

Establishment Year

Headquarters

Coromandel International Limited

1961

Hyderabad, India

Rashtriya Chemicals and Fertilizers

1978

Mumbai, India

India Farmers Fertiliser Cooperative

1967

New Delhi, India

Zuari Agro Chemicals Ltd

1967

Goa, India

Nagarjuna Fertilizers and Chemicals

1973

Hyderabad, India

Expansion of Distribution Networks: In 2024, Coromandel International invests over USD 10 million annually in R&D to develop fertilizers with enhanced efficacy and environmental sustainability, leading to a steady introduction of novel products tailored to specific crop needs.

Strategic Partnerships and Collaborations: ZACL entered into a strategic and financial partnership with Paradeep Phosphates Ltd (PPL), a subsidiary of Zuari Maroc Phosphates Pvt Ltd (ZMPPL), through a Business Transfer Agreement (BTA) dated March 1, 2021. This partnership involved the acquisition of ZACL's Zuarinagar plant by PPL. This acquisition enhances PPL’s production capabilities in the India Specialty Fertilizer market, potentially increasing the availability and variety of specialty fertilizers, which are crucial for high-efficiency crop nutrition.

India Specialty Fertilizer Industry Analysis

India Specialty Fertilizer Market Growth Drivers

Government Support for Sustainable Agriculture: The India government has introduced several initiatives aimed at promoting sustainable agriculture, which indirectly drives the demand for specialty fertilizers. The Pradhan Mantri Krishi Sinchai Yojana (PMKSY) also promotes efficient water use, which complements the use of water-soluble specialty fertilizers.

Increasing Adoption of High-Value Crops: According to the National Horticulture Board, the area under horticulture cultivation has increased to 25.66 million hectares in 2023 from 22.25 million hectares in 2018. This shift drives the demand for specialty fertilizers that provide specific nutrients required for these crops, enhancing yield and quality.

Rising Awareness and Education Among Farmers: Agricultural extension services and awareness programs have led to a higher adoption rate of these fertilizers. The National Bank for Agriculture and Rural Development (NABARD) reports that its initiatives reached over 9.5 million farmers by 2023. This will directly leave a positive impact on the specialty fertilizer production.

India Specialty Fertilizer Market Challenges

Infrastructure and Distribution Challenges: A report by the National Institute of Agricultural Marketing highlighted that rural agricultural input stores do not stock specialty fertilizers due to these logistical challenges. The distribution and infrastructure for specialty fertilizers are not as developed as for conventional fertilizers.

High Cost of Specialty: According to a report by the India Council of Agricultural Research (ICAR), the price of water-soluble fertilizers can be up to four times higher than that of traditional urea or DAP. This cost barrier limits the adoption of specialty fertilizers, particularly among small and marginal.

Limited Awareness and Knowledge: Despite the benefits, there is still a considerable lack of awareness and knowledge about specialty fertilizers among farmers. A survey conducted by the Federation of India Chambers of Commerce & Industry (FICCI) in 2022 found that only 30% of the farmers surveyed were aware of the existence and benefits of specialty fertilizers.

India Specialty Fertilizer Market Government Initiatives

National Mission on Sustainable Agriculture: This mission's Sub-Mission on Agricultural Mechanization (SMAM) has facilitated the adoption of precision farming tools that enhance the use of specialty fertilizers. As of 2023, over 2 million farmers had benefited from NMSA, driving the market for specialty fertilizers.

Pradhan Mantri Krishi Sinchai Yojana: By integrating latest technology systems with water-soluble specialty fertilizers, the scheme enhances nutrient delivery and crop yield. As of 2023, the area under micro-irrigation increased to 12.08 million hectares, significantly boosting the demand for specialty fertilizers that are compatible with these systems.

Paramparagat Krishi Vikas Yojana: This scheme promotes organic farming through a cluster-based approach, encouraging the use of bio-fertilizers and organic specialty fertilizers. By 2023, the scheme had covered 7 lakh hectares, supporting over 10,000 clusters of organic farmers.

India Specialty Fertilizer Market Future Outlook

By 2028, the India specialty fertilizer market is expected to grow exponentially being driven by advancements in precision farming technologies, shift towards organic farming and increasing government support for sustainable agriculture.

Future Market Trends

Shift Towards Organic and Sustainable Farming: There is a growing trend towards organic and sustainable farming practices in India, driven by increasing consumer demand for organic produce. The area under organic farming increased to 5.91 million hectares in 2022-23 and is expected to grow further as per the Ministry of Agriculture & Farmers' Welfare.

Adoption of Precision Agriculture Technologies: According to a report by the National Association of Software and Service Companies (NASSCOM), the precision agriculture market in India is expected to grow significantly by 2028, with an increasing number of farmers using these technologies for efficient fertilizer application.

Expansion of E-commerce in Agricultural Inputs: Platforms like Agro Star and Big Haat offer a wide range of specialty fertilizers, making them more accessible to farmers across the country. According to a report by the Confederation of India Industry (CII), the online sales of agricultural inputs will grow rapidly in the coming years.
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