The Indian fertilizer Industry produces about 80 percent of its Urea fertilizer needs. And the fertilizer industry has the capacity to indigenously meet 50 percent of the country's phosphatic fertilizers. But India still depends heavily on imports for the raw ingredients for its phosphatic and potassium fertilizers.
2015 was a slow year for the Indian Fertilizer sector. Demand for fertilizer has been shrinking and imports rise. From April to August 2015, imports rose by about 54 percent. Another challenge the Indian Fertilizer industry faces is delayed subsidy payments from the government.
The total allocation for fertilizers in the Indian budget for 2016-2017 is Rs 70,000 crore ($10 billion), a reduction of 4% year on year. The budget allocation on decontrolled fertilizers (P&K) has been reduced by Rs 34.6 billion or 15% compared with the allocation for 2015/16.