India fertilizers market reached around 47.5 million MT in 2013

Date:05-20-2014

According to the report for "India Fertilizers Market Forecast & Opportunities, 2019”, the fertilizer consumption in India stood at an estimated 47.5 million MT in 2013. The reduction in potash and phosphate cost in international markets is expected to increase the consumption of complex fertilizers in India.

The major producers namely IFFCO, RCF, NFL, etc., are increasing their focus on overseas investments, especially in regions where mineral reserves are high and mergers will lead to lower production and transportation cost. However, the irregular subsidy provisions for urea as compared to potash and phosphate fertilizers is likely to remain a challenge for fertilizers manufacturers and affect their investment decisions as well.

Fertilizers are used to improve the productivity of nutrient depleted soil. To address the increasing food requirements of India's growing population, the consumption of fertilizers continues to increase in the country. Fertilizer consumption in India is dependent on the soil and climatic conditions of various zones in the country. Urea and Nitrogenous fertilizers are among the most popular fertilizers used in country, however, farmers also opt for DAP, SSP, MOP and complex fertilizers depending on their requirements. For Phosphatic and Potash based fertilizers, the country is majorly dependent on imports. Over the last few decades, excessive use of nitrogen fertilizers has increased alkalinity of the soil in northern and central regions of India. For soil enrichment, phosphate and potash is imported into the country from Canada and Russia, while natural gas, a vital feedstock for urea production, is imported from Gulf nations.