The Indian fertilizer industry is experiencing significant growth and is projected to reach a market size of Rs 1.38 lakh crore by 2032, expanding at a Compound Annual Growth Rate (CAGR) of 4.2 percent from 2024 to 2032, according to a report by IMARC Group. This growth trajectory highlights the sector's crucial role in enhancing India's agricultural productivity and ensuring food security.
In 2023, the Indian fertilizer market was valued at Rs 94,210 crore, fueled by increasing agricultural demands and strategic government interventions. The production of fertilizers in FY24 reached 45.2 million tonnes, reflecting the Ministry of Fertilizers' effective policies. India's status as the second-largest producer of fruits and vegetables globally, second only to China, further supports the expansion of the fertilizer industry.
Government initiatives have played a pivotal role in this growth. Direct income support schemes from both central and state governments have improved farmer liquidity, enabling greater investment in fertilizers. Programs such as PM-KISAN and PM-Garib Kalyan Yojana, which have been endorsed by the United Nations Development Programme, have significantly contributed to food security by providing financial support to farmers.
The geopolitical landscape has also influenced the Indian fertilizer market. The government has focused on increasing the domestic production of nano-liquid urea to stabilize fertilizer prices. Minister Mansukh Mandaviya announced plans to raise the number of nano-liquid urea production plants from nine to thirteen by 2025. These plants are expected to produce 44 crore bottles of 500 ml nano urea and di-ammonium phosphate (DAP), ensuring a steady supply to meet the growing agricultural demands.
Overall, the Indian fertilizer industry is set for robust growth, driven by supportive government policies, increased agricultural demands, and strategic initiatives to boost domestic production. This growth will be essential in maintaining the agricultural productivity and food security of the nation.
