INDIAN FERTILIZER INDUSTRY AT A GLANCE IN 2022 - 2023 In the financial year 2022, over 42 million metric tons of fertilizers were produced in India. India’s production of urea, DAP, and NPKs experienced a year-on-year increase of 14%, 3%, and 7%, respectively in FY 2022-23. During this period, the total production of urea, DAP, and NPKs amounted to 26.1 million tons, 4.0 million tons, and 8.7 million tons, respectively.
Sales of urea and DAP increased by 10% and 15%, respectively, while sales of MOP and NPK decreased by 33% and 12%, respectively.
• India is the second biggest consumer of fertilizer in the world next only to China.
• The India Fertilizers Market stood at 28.56 billion USD in 2022 and is projected to register a CAGR of 6.25% to reach 41.08 billion USD in 2028.
Challenges for the Fertilizer Industry• High government subsidies on Urea and DAP
• Companies are obliged to sell at MRP, with their higher cost of production or imports being reimbursed as subsidy by the Centre.
• Small Farmer Inability to derive full benefits.
• Heavy Import dependence.
• Entire potash requirement and 20 per cent urea requirement is met through imports.
• The use of nitrogen (N), phosphorous (P) and potassium (K) in the country has over the last few years sharply deviated from the ideal NPK use ratio of 4:2:1.
• Worsening of soil quality
• Environmental concerns and nutrient imbalance owing to rampant fertilizer usage.
• The India Fertilizers Market is fragmented, with the top five companies occupying 28.93%.
• Black market and corruption in the Indian fertilizer market.