4 Reasons Why India’s Fertilizer Market Ranks Third on a Global Scale
The Industry has played an important role in addressing the food requirements of its growing population as the fertilizer sector of India achieved a market size of INR 947 Bn in 2023.
Fertilizers are crucial for maintaining soil fertility and ensuring higher crop yields, which are equally necessary to meet increasing food demand. Therefore, India’s fertilizer market is essential in supporting the country’s agricultural sector.
The Industry has played an important role in addressing the food requirements of its growing population as the fertilizer sector of India achieved a market size of INR 947 Bn in 2023. Read ahead to explore the major factors affecting the growth of the market.
World’s Largest Population
- India’s population surpassed 1.4 billion in 2023, ultimately increasing the demand for food production. Along with this, rising incomes and urbanization demands higher consumption of food, further promoting the use of fertilizers.
- To keep up with this agricultural demand, India produced a total of 48.6-million-ton fertilizers in 2023 alone supporting the country’s growing food demand.
Seizing Export Opportunities
- In 2023 India’s Fertilizer exports rose by 48%, achieving an overall revenue of USD122 Million. As India ranks among the top three global fertilizer producers, the nation has been actively pursuing export opportunities to meet the global agricultural demand.
- To keep up the pace, the government of India aims to turn the nation into a net exporter in the field of fertilizer exports by the year 2025.
Precision Farming to the Rescue
- India saw a 7% increase in fertilizer placement efficiency as a result of precision farming. Precision farming uses technology to determine the exact nutrient requirements of crops and reduces
- Furthermore, the use of drones, soil sensors, and data analytics in precision farming helps farmers precisely apply only the required amount of fertilizer for optimum crop yields.
Government Initiatives Supporting the Farmers
- The Indian Government’s Initiatives like "One Nation One Fertilizer" aim at standardizing the quality and branding of all fertilizers across India. Under this scheme, the government oversees uniform packaging and branding to reduce pricing competition and ensure access to quality fertilizers.
- Along with this, the Government significantly increased nutrient-based subsidies in 2022 to address the cost burden of fertilizers. The subsidy for nitrogen was raised to 98.02 INR/kg and 66.93 INR/kg for phosphate, aiming to enhance the accessibility for farmers.
Prepping for the Days Ahead
Fertilizers are indispensable for India in meeting the agricultural challenges of its ever-growing population. The fertilizer market is set to reach soaring heights with the help of precision farming, export demands, government initiatives, and a rapidly rising population. In short, India Fertilizer market can help the nation unlock its optimum potential in farming and secure its food needs for the future.
