India is the third largest producer and second largest consumer of fertilizers, the country ranks second in terms of population only after China. The growing populace and shrinking arable land calls for the optimum use of crop nutrients and crop protection as such Fertilizers. The pressure has been rising to improve the end yields, which could meet the demand of ever-rising population of the country. Given such a scenario, the agriculture sector will ride upon the extensive usage of Fertilizers and other chemicals to improve the productivity.
Fertilizers are any solid, liquid or gaseous substances containing one or more plant nutrients. Either they are applied to the soil, directly on the plant (foliage) or added to aqueous solutions, in order to maintain soil fertility, improve crop development, yield and/or crop quality. The purpose of fertilizers are to supplement the natural supply of soil nutrient, build up soil fertility in order to satisfy the demand of crops with a high yield potential and to compensate for the nutrients taken by harvested products or lost by unavoidable leakages to the environment, in order to maintain good soil conditions for cropping. Manufactured fertilizers are classified according to different criteria as Number of nutrients i.e. single-nutrient or straight fertilizers and multi-nutrient/compound fertilizers, with two, three or more nutrients. Type of combination i.e. mixed fertilizers or ‘bulk-blends. Physical condition i.e. solid, liquid & gaseous. Nutrient release i.e. quick-acting, slow-acting, controlled-release by coating, stabilized by inhibitors.
The Government of India has been consistently pursuing policies conducive to increased availability and consumption of chemical fertilizers in the country and thereby maximizing agricultural production in the country. The government promotes and assists industries in the fertilizer sector and also plans and arranges import and distribution of fertilizer in the entire country. The department disburses subsidies to manufacturers, importers of decontrolled fertilizer under the nutrient based subsidy, which, is being administrated by the department of fertilizers to make these fertilizers available to the farmers at the indicative MRP.
According to recently published report of Bonafide Research "India Chemical Fertilizers Market Outlook, 2021" Chemical Fertilizers market of the country is moving forward with a over 5% CAGR, and is expected to flourish in years to come. Current low consumption of Chemical Fertilizers products in India, compared to world average offers immense opportunities for future growth. Availability of cheap labor and low processing costs offers opportunity for MNCs to setup their manufacturing hubs in India for their export markets. The sector is driven by huge opportunity for contract manufacturing and research for Indian players due to large availability of technically skilled labor. The low consumption as compared to the world there is a significant un-served market in the country to tap in to. By educating farmers and conducting special training programs regarding the need to use Chemical fertilizers in the adequate manner thereby improving the end yields that will satisfy the need of rising demand of food grains in the country.
Major participants in the Chemical Fertilizers market are private sector undertakings including Coromandel, Mangalore, and Zuari. Public sector units including GSFC, GNFC and Cooperative societies including IFFCO & KRIBHCO