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Fertilisers Market to Grow in India

16 June 2014

INDIA - Increasing demand for food grains will increase fertilisers production in the country, TechSci Research, a research based global management consulting firm said in its report.

“Growing use of fertilizers for enhancing productivity and new investment policies of government to boost fertilizer consumption in India”, the report titled ‘India Fertilisers Market Forecast & Opportunities, 2019’ said.

The demand for fertilisers in the country has been growing due to increasing demand for food grains on account of the country’s burgeoning population, the report adds.

“Urea accounts for majority of the market share in terms of volume consumption of fertilisers in the country. High subsidies provided in the sector along with new investment policy of the government are expected to infuse investments in fertilisers market over the next five years,” Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm said.

Mr Chechi said: “Government’s efforts in the form of Bringing Green Revolution in Eastern India (BGREI) scheme and National Food Security Act are expected to propel the consumption of fertilisers in the country.”

However, uneven and delayed subsidies coupled with rising natural gas prices pose a threat to fertiliser producers in India, Mr Chechi stressed.

The report noted that Urea, diammonium phosphate (DAP), Muriate of potash (MOP) and complexes are the major fertilisers used in India for supplying essential nutrients like nitrogen, phosphate and potash to the soil.

However, excessive and repeated use of urea has resulted in creating an imbalance in the nutrient profile of the soil in most parts of the country, thereby decreasing productivity.


The country predominantly depends on importing phosphate and potash raw materials for the production and distribution of complex fertilisers.

The feedstock for urea that includes natural gas, is also imported in the form of liquefied natural gas from Gulf nations.

Urea is the most widely consumed fertiliser in the country, primarily in north and south regions of the country.

The new investment policy for urea is likely to increase investments in the urea sector.

Moreover, the decrease in prices of phosphate and potash in the international market is expected to accelerate the demand for phosphate and potash fertilisers in the country.

India is the third largest producer and consumer of fertilisers in the world after the United States and China.

TheCropSite News Desk



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