India Fertilizers Market Analysis by Fertilizer Type & Sector (2025–20

India Fertilizer Market Size and Forecast 2025–2033

According to Renub Research India fertilizer market is expected to witness strong and sustained growth during the forecast period, expanding from a market size of US$ 43.54 billion in 2024 to approximately US$ 74.06 billion by 2033. This growth represents a compound annual growth rate (CAGR) of 6.08% from 2025 to 2033. The expansion of the market is supported by rising agricultural productivity needs, strong government subsidy support, and increasing demand for staple crops such as wheat, rice, sugarcane, and vegetables. In addition, the gradual transition toward sustainable farming practices, including bio-fertilizers, nano fertilizers, and balanced nutrient management, is reshaping the structure of the Indian fertilizer industry.

Overview of the Indian Fertilizer Industry

Fertilizers are chemical or natural substances applied to soil or plants to enhance fertility and promote healthy crop growth. They supply essential macronutrients such as nitrogen (N), phosphorus (P), and potassium (K), along with secondary and micronutrients required for plant development. In India, fertilizers play a vital role in achieving food security and sustaining agricultural output, particularly for water-intensive and nutrient-demanding crops.

Agriculture remains the backbone of the Indian economy, supporting a significant portion of the population. Fertilizers are crucial for improving crop yields, enhancing soil productivity, and ensuring consistent food supply for a rapidly growing population. The Government of India heavily subsidizes fertilizers to keep them affordable for farmers and prevent inflationary pressure on food prices. However, alongside productivity goals, there is growing emphasis on responsible fertilizer use to minimize soil degradation, groundwater pollution, and long-term environmental damage.

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Growth Drivers in the India Fertilizer Market

Government Subsidies and Policy Support

Government subsidies remain the most influential growth driver for the Indian fertilizer market. Fertilizers such as urea, DAP, and NPK complexes are subsidized to ensure affordability for farmers across income groups. These subsidies encourage widespread fertilizer usage, directly improving crop yields and strengthening food security.

The Nutrient-Based Subsidy (NBS) scheme allows manufacturers to set market prices while the government provides subsidies based on nutrient content. To counter global price volatility, the government approved a special subsidy package for DAP, offering ₹3,500 per metric ton from April 2024 to December 2024 to ensure steady availability at reasonable prices. Furthermore, the PM Programme for Restoration, Awareness Generation, Nourishment, and Amelioration of Mother-Earth (PM-PRANAM) promotes reduced chemical fertilizer consumption and encourages organic farming. States and Union Territories receive financial incentives by saving fertilizer subsidies, reinforcing sustainable agriculture practices.

Rising Agricultural Demand and Productivity Needs

India’s rapidly growing population and changing dietary patterns are driving increased demand for food grains, fruits, and vegetables. To meet this rising demand, farmers must enhance productivity per hectare, making fertilizers indispensable. High-yield crop varieties and intensive farming practices further increase nutrient requirements.

Key agricultural states such as Punjab, Uttar Pradesh, Maharashtra, and Andhra Pradesh account for significant fertilizer consumption due to large cultivated areas and high cropping intensity. With India’s population projected to peak at around 1.7 billion by 2064, ensuring sufficient agricultural output remains a national priority, further strengthening fertilizer demand.

Growing Awareness of Sustainable Agriculture

Sustainability has become a major focus area within Indian agriculture. Excessive reliance on chemical fertilizers has led to declining soil health, nutrient imbalance, and environmental concerns. As a result, farmers are increasingly adopting bio-fertilizers, organic fertilizers, and integrated nutrient management practices.

Government initiatives promoting soil health cards, organic farming, and balanced fertilization are accelerating this transition. The rising use of bio-fertilizers and nano fertilizers not only supports environmental sustainability but also creates new growth avenues for fertilizer manufacturers focused on innovation and efficiency.

Key Issues in the Indian Fertilizer Market

Excessive Use of Chemical Fertilizers

One of the most critical challenges in the Indian fertilizer market is the overuse of chemical fertilizers, particularly nitrogen-based products. Excessive application of NPK fertilizers disrupts soil nutrient balance, reduces organic matter, and contaminates water bodies through runoff and leaching.

This overdependence results in declining soil fertility over time, increasing farmers’ reliance on external inputs. To address this issue, policymakers and agricultural experts advocate balanced fertilization, soil testing, and greater adoption of organic and bio-fertilizers to restore soil health and ensure long-term sustainability.

Rising Prices and Availability Constraints

Despite subsidies, fertilizer prices have been rising due to increased costs of raw materials, energy, and global supply chain disruptions. Small and marginal farmers are particularly vulnerable to price fluctuations and supply shortages, especially during peak sowing seasons.

Distribution inefficiencies and logistical challenges in remote regions further disrupt timely fertilizer availability. Although the government actively monitors supply and pricing, global market volatility and import dependence continue to pose risks to consistent fertilizer access.

Indian DAP Fertilizers Market

The Di-Ammonium Phosphate (DAP) segment is a crucial component of the Indian fertilizer market due to its high phosphorus content, which supports root development and crop maturity. DAP demand peaks during the Rabi season and is particularly strong in states such as Punjab, Haryana, and Uttar Pradesh.

India relies heavily on imports to meet DAP demand due to limited domestic production capacity, making the market vulnerable to international price fluctuations. Government subsidies help stabilize prices for farmers, and rising emphasis on balanced fertilization is expected to sustain steady growth in the DAP segment.

Indian MOP Fertilizers Market

The Muriate of Potash (MOP) fertilizer market supports potassium requirements for crops such as sugarcane, cotton, fruits, and vegetables. Potassium enhances water retention, disease resistance, and overall crop yield.

India lacks natural potash reserves and depends entirely on imports from countries such as Canada and Belarus. While subsidies help control prices, supply chain volatility remains a challenge. Southern and western states including Maharashtra, Karnataka, and Tamil Nadu are major consumers. Increasing awareness of nutrient-balanced farming is driving steady growth in this segment.

India Public Fertilizer Market

The public fertilizer sector plays a vital role in ensuring affordability and accessibility. Government-owned enterprises such as National Fertilizers Limited and Rashtriya Chemicals & Fertilizers Limited are key producers of subsidized fertilizers, particularly urea.

These companies ensure consistent supply to rural and remote areas, supported by government funding and policy backing. However, challenges such as aging infrastructure and dependence on imported raw materials affect production efficiency. Modernization initiatives are gradually improving performance in this segment.

India Private Fertilizer Market

The private fertilizer sector is dynamic and innovation-driven, supported by strong distribution networks and diversified product portfolios. Leading private players focus on specialty fertilizers, micronutrients, organic fertilizers, and customized nutrient solutions tailored to regional soil conditions.

Companies such as Coromandel International Ltd. and Chambal Fertilisers & Chemicals Ltd. emphasize R&D, branding, and precision farming solutions. While regulatory challenges and subsidy dependence remain concerns, the private sector continues to be a major growth engine for the Indian fertilizer market.

Indian Urea Fertilizers Market

Urea remains the dominant fertilizer segment in India by both value and volume. It is the primary source of nitrogen and is essential for improving crop yields in nitrogen-deficient soils. Heavy government subsidies make urea highly affordable, driving widespread adoption among farmers.

Ease of application and compatibility with diverse crops further strengthen its market position. Given India’s focus on food security, urea is expected to maintain its leadership position despite efforts to promote balanced nutrient usage.

India Cooperative Fertilizer Market

The cooperative fertilizer sector is expected to retain a leading share during the forecast period. Cooperative societies play a critical role in fertilizer distribution, leveraging extensive rural networks and direct farmer engagement.

Supported by government subsidies, cooperatives provide fertilizers at affordable prices and often offer extension services and technical guidance. Their farmer-centric approach enhances trust and reliability, positioning the cooperative sector as a cornerstone of India’s fertilizer distribution system.

State-Level Fertilizer Market Insights

Uttar Pradesh Fertilizer Market

Uttar Pradesh is projected to be the fastest-growing state-level fertilizer market in India due to its vast agricultural land and large farming population. High fertilizer demand supports extensive cultivation of cereals, pulses, and vegetables. In June 2024, the state developed a fertilizer inventory of nearly 4.8 million tonnes to meet Kharif season demand, highlighting its strategic importance.

Punjab Fertilizer Market

Punjab, often referred to as India’s breadbasket, has one of the highest fertilizer consumption rates in the country. Heavy usage of urea, DAP, and NPK fertilizers supports high yields of wheat and rice. Although productivity remains strong, excessive fertilizer use has led to soil degradation, prompting gradual adoption of sustainable alternatives.

Andhra Pradesh Fertilizer Market

Andhra Pradesh’s fertilizer market supports intensive cultivation of rice, maize, pulses, and horticultural crops. Demand remains strong for urea, DAP, and NPK fertilizers. In August 2024, the Ministry of Agriculture allocated 22.30 lakh metric tons of fertilizers for the Rabi season, reinforcing supply security. Increasing awareness of organic and bio-fertilizers is gradually improving sustainability outcomes.

Key Players and Industry Developments

Key players in the Indian fertilizer market include Nagarjuna Fertilizers and Chemicals Ltd., National Fertilizers Ltd., Rashtriya Chemicals & Fertilizers Limited, Chambal Fertilisers & Chemicals Ltd., and Coromandel International Ltd..

Recent innovations include mandatory standards for Nano Urea and Nano DAP under the Fertilizer Control Order, expansion of nano fertilizer plants, and the launch of advanced nutrient products such as Nano DAP liquid fertilizers and zinc-enriched formulations. These innovations aim to improve efficiency, reduce environmental impact, and enhance farmer incomes.

Conclusion

The India fertilizer market is set for strong growth through 2033, driven by population growth, rising food demand, government subsidies, and increasing awareness of sustainable agriculture. While challenges such as overuse of chemical fertilizers, rising costs, and import dependence persist, innovation in bio-fertilizers, nano fertilizers, and balanced nutrient management offers long-term growth opportunities. With coordinated policy support and technological advancement, the fertilizer industry will remain a critical pillar of India’s agricultural and food security framework.