Driven by burgeoning demand and supportive government policies, the fertiliser industry in India is expanding rapidly in line with its position as the world's second-largest producer of fruits and vegetables, next to China
With a CAGR of 4.2 percent the Indian fertiliser industry is expected to reach a market size of Rs 1.38 lakh crore by 2032, driven by increased agricultural demands and governmental interventions. The market size in 2023 was Rs 94,210 crore. Fertiliser production in FY24 was recorded at 45.2 million tonnes, reflecting the Ministry of Fertilisers' successful policies.
India's position as the world's second-largest producer of fruits and vegetables, next only to China, underpins the fertiliser industry's growth.
Government initiatives, such as direct income support schemes from both central and state governments, have significantly bolstered farmer liquidity. This has not only enhanced their ability to invest in fertilisers but also instilled a sense of confidence in the industry's stability and growth.
The United Nations Development Programme has endorsed PM-KISAN and PM-Garib Kalyan Yojana for their role in promoting food security. India is focusing on domestic production of nano-liquid urea to stabilise fertiliser prices. Plans to increase the number of nano-liquid urea production plants to 13 by 2025 have been announced. This reduction marks a significant step towards self-sufficiency and economic resilience, aligning with the Atmanirbhar Bharat initiative.
The government has mandated 100 percent Neem coating on subsidised agricultural urea to improve nutrient efficiency and prevent diversion for non-agricultural use. India aims to achieve urea self-sufficiency by 2025-26 through increased local production of nano urea. Additionally, the Paramparagat Krishi Vikas Yojana promotes organic farming with financial incentives. Climate change poses a significant challenge, with potential reductions in wheat yields by 2050 and 2080.
The National Mission for Sustainable Agriculture (NMSA) is implementing strategies to enhance the resilience of Indian agriculture to climate change. The government is also focused on revitalising closed fertiliser plants in Talcher, Ramagundam, Gorakhpur, Sindri, and Barauni. Additionally, efforts are being made to educate farmers about balanced fertiliser use, crop productivity, and the advantages of cost-effective subsidised fertilisers. Incessant research and innovation are critical for evolving new types of fertilisers and improving existing ones.