India Fertilizer Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

India Fertilizer Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Indian fertilizer market is projected to register a CAGR of 11.9% during the forecast period (2021-2026).

The impact of the global coronavirus pandemic on the Indian fertilizer market is low, as the national government exempted this sector from lockdown restrictions. However, the sector faced challenges in shortage of labor and raw materials due to the lockdown. The government of India took measures to ensure fertilizers are available to the farmers in the midst of lockdown, which resulted in the increased sales of fertilizers. India is the second-largest consumer of fertilizers globally, with an annual consumption of more than 55.0 million metric ton. Among the various types of fertilizers used in India, urea, a nitrogen source, is one of the most consumed fertilizers in the country. The consumption of urea in the country as of March 2018 was 29.0 million metric ton. DAP is the second majorly consumed fertilizer in the country. According to the Department of Fertilizers, in 2017, the total production of urea and DAP in India was 20.7 million metric ton and 14.6 million metric ton, respectively, which was 1.36% higher compared to 2016

Key Market TrendsIncreasing Agricultural Production

According to the Department of Agriculture, Cooperation & Farmers Welfare, agricultural production in the country has increased despite the decreasing area under cultivation. Rice production increased from 112.5 million metric ton in 2018 to 116.5 million metric ton in 2019, while wheat production increased from 99.9 million metric ton in 2018 to 103.6 million metric ton in 2019. Various Initiatives of the Government of India, such as the initiative for pulses by providing subsidies for quality seeds produced, cluster frontline demonstrations through KVKs, etc., are also being undertaken under the National Food Security Mission (NFSM) for increasing the production and productivity of pulses in the country.

Increase in the production of DAP and Complex Fertilizers

Urea is the majorly consumed fertilizer in India, followed by DAP. According to the Department of Fertilizer of India, the production of DAP and complex fertilizers is increasing in the country. The production of DAP reached 3.9 million metric ton, and the production of complex fertilizers reached 9.0 million metric ton in 2019. The increase in production resulted in the decline of DAP imports by 26.0% in 2019. The production of DAP has increased between 2017 and 2018 when the global prices for phosphate raw materials fell. This boosted the production of DAP in the country, owing to the higher demand for fertilizers.

Competitive Landscape

The Indian fertilizer market is a consolidated market with the presence of major players, such as Coromandel International Limited, Indian Farmers Fertilizer Cooperative (IFFCO), Fertilizers and Chemicals Travancore (FACT), Deepak Fertilizers Limited, and Chambal Fertilizers Limited, among others. The market is fragmented with a mix of government-owned and co-operatives garnering a high market share in the straight and complex fertilizer space and private companies engaged in a high degree of product innovation to tap the non-subsidy space.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
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