Market Trends of india fertilizers Industry
The rising consumer demand domestically and internationally is the major driving factor for the rising acreage in India
- During the study period, the country witnessed a 6% increase in field crop cultivation. This surge in the cultivation of cereals, pulses, and oilseeds, driven by both domestic and international consumer demand, played a pivotal role in expanding the acreage.
- Breaking down the crops, rice, wheat, and soybean dominated the country's agricultural landscape in 2022, accounting for 25.4%, 17.4%, and 7.5%, respectively. Rice, a staple in India, commands a significant share, covering a quarter of the total cropped area and feeding nearly half the population. It finds cultivation across the nation, with key states being West Bengal, Uttar Pradesh, Andhra Pradesh, Punjab, and Tamil Nadu. However, India's rice production dipped by 6% (104.99 million tons) in the kharif season of 2022, primarily due to reduced paddy acreage in states like Jharkhand, Madhya Pradesh, and West Bengal, grappling with rainfall deficits.
- Punjab, West Bengal, Haryana, and Rajasthan emerge as the primary wheat cultivators in India. From 2017 to 2022, wheat cultivation in India witnessed a 5% increase. However, the wheat output dipped to 107.74 million tonnes in 2022 from the previous year's 109.59 million tonnes. This decline can be attributed to heavy rainfall and hailstorms that battered the fertile plains of northern, central, and western India. These natural calamities inflicted significant damage on the maturing winter-planted crops, including wheat, leading to substantial losses for farmers.
- Given the robust cereal cultivation in India, bolstered by surging domestic and international demand, the Indian fertilizer market is poised for growth during 2023-2030.
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Among the primary nutrients, nitrogen is the most-applied nutrient in field crops, with an average application rate of 223.5 kg per hectare
- In 2021, the average application rate for primary nutrients stood at 125.1 kg/ha. Notably, nitrogen topped the list with an average application rate of 223.5 kg/ha. Given the intensive cultivation of crops like rice in the country, it is no surprise that nitrogen, being a crucial nutrient, plays a pivotal role. However, the deficiency of this nutrient in the soil is hampering rice productivity nationwide.
- The soil health in India, as highlighted in the State of Biofertilizers and Organic Fertilizers report, is a cause for concern. It reveals a rising trend in the consumption of chemical fertilizers, with 97.0%, 83.0%, and 71.0% of tested soils showing deficiencies in nitrogen, phosphorous, and potassium, respectively.
- Among the major crops, wheat, rice, and corn/maize led the pack in nutrient application rates in 2021, with averages of 231, 156, and 149 kg/ha, respectively. Wheat and rice, being staple foods both domestically and globally, face significant yield and profit reductions due to multiple nutrient deficiencies. Apart from nitrogen, phosphorous, and potassium, these crops also rely on micronutrients like sulfur, boron, iron, and zinc for optimal growth. Given the critical role of nutrient management in successful crop production, the market is witnessing growth.
- Field crops, especially grains and cereals, have a voracious appetite for primary nutrients, particularly nitrogen fertilizers. With the extensive cultivation of these crops depleting the soil's nutrient content, the demand for fertilizers is expected to surge during 2023-2030, driving market growth.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- The area under horticulture is steadily increasing over the years due to the increasing demand for fruits and vegetables.
- In 2022, manganese and copper are the highly applied nutrients in India owing to their widespread deficiencies in soil
- Due to its critical function in the development of plant tissues and its contribution to overall plant growth, calcium is the secondary macronutrient that receives the highest application
- More than half of India’s cultivated land has access to assured irrigation
- Widespread micronutrient deficiency in the soils of India is leading to reduced crop yield
- Of the primary nutrients, nitrogen is used in larger amounts to aid in rapid vegetative growth and the production of fruits
- Vegetable crops predominantly rely on calcium and magnesium as their primary secondary macronutrients, with application rates peaking at 33 kg/ha and 31 kg/ha, respectively
