New Investment Policy to boost Fertilizer Market in India during 2014-19

India is the third largest producer and consumer of fertilizers in the world after the United States and China. Urea, DAP, MOP and complexes are the major fertilizers used in India for supplying essential nutrients like nitrogen, phosphate and potash to the soil. The demand for fertilizers in the country has been growing due to increasing demand for food grains on account of the country’s burgeoning population. 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.

According to a recently published TechSci Research report “India Fertilizers Market Forecast & Opportunities, 2019“, IFFCO, RCF and NFL are the leading fertilizer producers in the country. The country predominantly depends on importing phosphate and potash raw materials for the production and distribution of complex fertilizers. The feedstock for urea, i.e. natural gas, is also imported in the form of liquefied natural gas from Gulf nations. Urea is the most widely consumed fertilizer 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 fertilizers in the country.

“Urea accounts for majority of the market share in terms of volume consumption of fertilizers in the country. High subsidies provided in the sector along with new investment policy of the government are expected to infuse investments in fertilizers market over the next five years. 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 fertilizers in the country. However, uneven and delayed subsidies coupled with rising natural gas prices pose a threat to fertilizer producers in India.”, said Karan Chechi, Research Director with TechSci Research.

“India Fertilizers Market Forecast & Opportunities, 2019” has analyzed the potential of the fertilizers market and provides statistics and information on market sizes, shares and trends pertaining to India. The report will suffice in providing the intending clients with cutting-edge market intelligence and help them in taking sound investment evaluation. Besides, the report also identifies and analyzes the emerging trends along with essential drivers and key challenges faced by the fertilizers industry in India.

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