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Fertilizer industry in India - statistics & facts

Fertilizers have played an essential role in agricultural production, providing vital nutrients for crops and registering increasing demands over the years. As an agrarian country, India is home to numerous small and marginal farmers and is often plagued by low productivity and low quality. Crops are mainly rain-fed and cultivated on a single piece of land over time, decreasing soil fertility in many regions. Thereby, increasing quantities of nitrogen fertilizers have been used in the country. Because of this, the Indian government has brought about economic reforms and has ensured that fertilizers are available at affordable prices to increase productivity. Due to subsidy eligibility on notified fertilizers, the Indian fertilizer industry has been able to provide enhanced food security for the country. While agriculture is heavily dependent on the use of fertilizers, the government has met almost all demand for chemical fertilizers.

The state of the Indian fertilizer industry

As one of the country's eight core industries, fertilizer production has had positive growth since 2014 until 2021. India is among the largest consumers of fertilizers in the world, with domestic sales continually growing. Among the various types, NPK fertilizers are the most common ones, and urea stands as the most highly consumed fertilizer. However, the domestic consumption of urea was higher than the volume produced domestically. Domestic production has decreased due to the closure of many urea plants, and accordingly, the share of imported urea has increased considerably in the past years. Apart from importing crude and manufactured fertilizers, the country is heavily dependent on importing raw materials such as rock phosphate, ammonia, and phosphoric acid. The value of India's fertilizer imports was estimated over 500 billion Indian rupees during fiscal year 2020.

Market leaders in fertilizer production

The Indian fertilizer industry comprises of various government and private fertilizer companies which produce a variety of fertilizers. Indian Farmers Fertiliser Cooperative Limited (IFFCO), a multi-state cooperative society headquartered in the nation's capital, is the largest fertilizer manufacturer and marketer. With an annual installed capacity of over three million metric tons, National Fertilizers Limited, a state-owned corporation, is another of the largest producer of urea with a share of about 15 percent of total urea production in the country. Leading the phosphatic fertilizer production was Coromandel International Limited, with roughly 2.8 million metric tons of production in financial year 2021. In addition to phosphatic fertilizer, Coromandel manufactures a wide range of fertilizers, pesticides, and specialty nutrients and is a leading agricultural solutions provider.

Interesting statistics

In the following 5 chapters, you will quickly find the 24 most important statistics relating to "Fertilizer industry in India".


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