India Fertilizer Market Outlook

According to the report by Expert Market Research (EMR), the India fertilizer market is expected to grow at a CAGR of 4.30% between 2025 and 2034, reaching a projected value of USD 14.9 billion by 2034. The India fertilizer market growth is being driven by the country's expanding agricultural sector, increasing focus on improving crop yields, and rising adoption of balanced nutrient management practices. Additionally, government initiatives aimed at ensuring food security and promoting sustainable farming methods are significantly aiding the fertilizer market expansion in India.

Fertilizers play a crucial role in India's agricultural productivity by replenishing essential nutrients in the soil and enhancing crop output. They include organic and inorganic substances that supply plants with the nutrients required for their growth, such as nitrogen (N), phosphorus (P), and potassium (K). India, being one of the largest agricultural producers globally, relies heavily on fertilizers to meet its domestic food demand and support its agrarian economy. The demand for fertilizers in the country has grown steadily, driven by population growth, limited arable land, and the need for enhanced agricultural efficiency.

The Indian government’s strong emphasis on boosting agricultural productivity through programs such as the National Mission on Sustainable Agriculture (NMSA) and the Soil Health Card Scheme has also contributed to the growing adoption of fertilizers. Moreover, increasing awareness among farmers regarding nutrient-based fertilizers and the benefits of micro and specialty fertilizers is driving market diversification and technological progress.

India Fertilizer Market Size and Share

India ranks among the top consumers of fertilizers globally, accounting for a substantial share of the Asia Pacific fertilizer demand. The market is dominated by nitrogenous fertilizers, particularly urea, which continues to be the most widely used type across various crops. Phosphatic and potassic fertilizers, though less consumed compared to nitrogenous fertilizers, are gaining traction as part of balanced nutrient management practices.

As of 2024, urea accounts for more than half of the total fertilizer consumption in India, supported by its affordability and government subsidies. Diammonium phosphate (DAP) and muriate of potash (MOP) also hold significant market shares, particularly in regions cultivating cereals, pulses, and oilseeds.

Geographically, the northern and western regions of India—comprising states such as Uttar Pradesh, Punjab, Haryana, Gujarat, and Maharashtra—represent the largest fertilizer-consuming markets, driven by their extensive agricultural activities and high cropping intensity. Meanwhile, southern states like Andhra Pradesh, Tamil Nadu, and Karnataka are witnessing growing adoption of specialty fertilizers and biofertilizers due to increasing awareness of soil health and sustainable agriculture.

Private sector participation in fertilizer production and distribution has also strengthened market competitiveness. Public sector enterprises such as the Indian Farmers Fertiliser Cooperative Limited (IFFCO), National Fertilizers Limited (NFL), and Rashtriya Chemicals & Fertilizers Limited (RCF) remain key players, while private entities like Coromandel International, Chambal Fertilisers, and Tata Chemicals continue to expand their presence through innovation and distribution efficiency.

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India Fertilizer Market Trends

The India fertilizer market is witnessing several key trends shaping its evolution. One of the most prominent trends is the shift toward sustainable and eco-friendly fertilizers. Farmers and policymakers are increasingly focusing on reducing the environmental impact of traditional fertilizers, promoting the use of organic fertilizers, biofertilizers, and slow-release nutrient formulations.

Another major trend is the adoption of balanced nutrient management (BNM) practices. With growing awareness of soil degradation caused by excessive use of nitrogen-based fertilizers, farmers are gradually adopting balanced fertilizer applications that combine nitrogen, phosphorus, and potassium in optimal ratios.

The market is also seeing rapid digital transformation in fertilizer distribution and advisory services. The use of mobile apps, digital payment systems, and remote soil testing technologies has improved accessibility and transparency in the fertilizer supply chain. Companies and cooperatives are investing in digital platforms to provide real-time information to farmers about product availability, pricing, and soil-specific recommendations.

Additionally, the emergence of specialty and micronutrient fertilizers such as zinc, boron, and iron-based formulations is gaining momentum. These products help in addressing specific nutrient deficiencies and improving crop quality and yield.

Furthermore, the integration of precision agriculture technologies, such as satellite imaging and drone-based soil monitoring, is enhancing fertilizer application efficiency, reducing waste, and improving sustainability.

Drivers of Growth

The growth of the India fertilizer market is driven by several key factors:

• Rising Population and Food Demand:
  India’s growing population continues to put pressure on the agricultural sector to produce more food from limited arable land. Fertilizers play a vital role in increasing per-hectare productivity and ensuring food security.

• Government Support and Subsidies:
  The government provides significant financial support to the fertilizer industry through subsidy programs that make fertilizers affordable for farmers. Policies such as the Nutrient Based Subsidy (NBS) scheme and Direct Benefit Transfer (DBT) system have improved transparency and efficiency in subsidy disbursement.

• Increasing Awareness of Soil Health:
  The introduction of initiatives like the Soil Health Card Scheme has raised awareness about nutrient deficiencies and optimal fertilizer use, promoting more judicious and effective fertilizer application.

• Growth of High-Value Crops:
  The increasing cultivation of high-value crops such as fruits, vegetables, and oilseeds has driven the demand for specialty and customized fertilizers, which enhance yield quality and nutrient balance.

• Technological Advancements in Agriculture:
  The rising adoption of modern agricultural technologies, including precision farming, drip irrigation, and greenhouse cultivation, is boosting the demand for efficient fertilizer formulations compatible with these systems.

• Expansion of the Biofertilizer Segment:
  The biofertilizer market in India is expanding rapidly due to the growing preference for organic farming and government incentives promoting the use of microbial-based products for sustainable agriculture.

India Fertilizer Market Segmentation

Some of the major players explored in the report by Expert Market Research are as follows:

• Coromandel International Limited
• Chambal Fertilisers and Chemicals Ltd
• Gujarat Narmada Valley Fertilizers and Chemicals Ltd
• Indian Farmers Fertiliser Cooperative Limited (IFFCO)
• Rama Phosphates Limited
• ICL Group Ltd
• The Fertilisers and Chemicals Travancore Limited (FACT)
• Deepak Fertilizers & Petrochemicals Corporation Ltd.
• Gujarat State Fertilizers & Chemicals Limited
• Rashtriya Chemicals and Fertilizers Limited (RCFL)
• National Fertilizers Ltd.
• Southern Petrochemical Industries Corporation Ltd
• Others

Challenges and Opportunities

Despite strong growth prospects, the India fertilizer market faces several challenges. Overdependence on urea has resulted in nutrient imbalance in soils, affecting long-term productivity. Additionally, volatility in raw material prices and logistical constraints in fertilizer distribution pose hurdles to market stability.

Environmental concerns related to excessive chemical fertilizer use, such as soil degradation and water pollution, also present major challenges. Moreover, the subsidy burden on the government remains significant, sometimes leading to delays in disbursement that affect manufacturers’ cash flow.

However, these challenges create opportunities for innovation and reform. The growing emphasis on organic and biofertilizers presents significant potential for sustainable growth. Expanding domestic production of phosphatic and potassic fertilizers and investing in renewable feedstock sources for urea production can enhance self-sufficiency.

Additionally, digitalisation of the fertilizer value chain, improved logistics infrastructure, and the use of data-driven agricultural practices can boost efficiency and transparency.

India Fertilizer Market Forecast

The India fertilizer market is poised for steady growth over the forecast period, supported by rising agricultural productivity goals, favorable government initiatives, and technological advancements. By 2034, the market is expected to reach a value of USD 14.9 billion, growing at a CAGR of 4.30% between 2025 and 2034.

The adoption of sustainable fertilizers, increased use of precision agriculture, and the expansion of digital services for farmers will be key growth enablers. The government's ongoing reforms to rationalize fertilizer subsidies and promote nutrient balance are expected to further strengthen market stability.

As India continues to modernize its agricultural sector, the fertilizer industry will remain integral to achieving higher crop yields and ensuring food security. The focus on innovation, sustainability, and efficiency is set to define the next decade of growth in the India fertilizer market.

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