The fertilizer industry in India is vital as it provides more chemicals, organic and inorganic, for plant growth. Industry experts say plant growth requires sixteen elements, where 9 elements are in large quantities, and the remaining 7 are in smaller amounts.

Agriculture is a large sector, and the fertilizer industry is the main for the Indian economy. The fertilizer industry manufactures crucial raw materials for crop production. The key aim of the fertilizer industry is to ascertain the primary and secondary elements essential in desired quantities for crop production.

Importance of the fertilizer industry in India

The agricultural sector's success in India depends mainly on the fertilizer industry. The benchmark in India is the food industry and is set well because of the competent technical fertilizer-producing companies.

The Indian fertilizers market during the 2021-2026 period forecasts a CAGR of 11.9% growth. The Indian fertilizer market reached 2020 INR 887 Billion. Fertilizer consumption has shown a steady rise and is contributing to sustainable food grain production in the country.

India houses numerous government and top-class private fertilizer companies. It ranges from fungicides to fertilizers to seeds, coming from many Indian fertilizer companies, and this is the main reason for the agriculture success stories in India.

Right now, niti.gov.in says nitrogenous is produced in 56 large plants in association with complex and phosphatic fertilizers, while 72 small and medium fertilizers production units are, as per the Indian fertilizer industry, having SSP (single super phosphate). The products manufactured in India fertilizers are nitrogenous fertilizers, phosphate-based fertilizers, and complex fertilizers. The fertilizer industry in India shows rapid growth and makes a long-lasting global impression.

Types of Fertilizers

The fertilizers are in two types:

Organic Fertilizer

Organic fertilizers are the most commonly used fertilizers. They are available readily and are highly safe. It is composed of organic and natural materials made at home. Popular organic fertilizers include peat moss, manure, sewage, slurry, worm castings, guano, and sea wooed.

Organic fertilizers advantages

  • Improvement in the soil quality
  • Retention of soil moisture
  • Mobilize existing nutrients of the soil
  • Does not harm plants with chemical fertilizers
  • Releases consistently and slowly the nitrogen

Chemical or Inorganic fertilizer

The fertilizers are derived from chemical compounds such as ammonium phosphates, potassium chloride, and ammonium nitrate. It is useful for short-term growth. The inorganic fertilizers popular in India have mined rock phosphate, limestone, and Chilean sodium nitrate.

 Inorganic fertilizer advantages

  • Quickly releases nitrogen
  • With more nitrogen, the plant's leaves, and stems are healthier
  • Potassium promotes the development of leaves and stems 
  • With increased phosphorous levels, the roots and tubers are healthier

Market Analysis of India Fertilizers 

The Indian fertilizers market registers a projection of 5.89% CAGR with these categories:

  • The largest crop type is the field crops. Field crops dominate the fertilizers market due to their cultivation area which is large in the country. It accounts for over 95% total crop area.
  • Fastest by product type such as Boron. The soils that are boron deficient are in the country’s North-Eastern and Eastern parts. The application of Boron increases the production of food, ensuring its security of food. 
  • The largest by application mode is the soil. The fertilizer application in a conventional way is applicable without equipment. It improves soil fertility and plant health.
  • The fastest growing water soluble provides nutrient grades in a wide range and favors different application methods such as soil application and foliar as per requirement.

Development and growth of the fertilizer industry in India

The fertilizer industry in India is the fastest-growing industry that has taken in recent years rapid strides. Post-independence development was in 1906 in Banipet in Tamil Nadu as India’s first superphosphate-producing factory supporting the fertilizer industry.

The fertilizer industry in India is on the frontline as the topmost fertilizer-producing country, and it is the result of the planning and development of the industry for more than three decades.

In 1951, the FCI (Fertilizer Corporation of India Ltd) was set up in Bihar, Sindri plant, and it was the turning point that showed steady progress in the country. The progress was slow up to 1966.

In 1951-52, the nitrogen fertilizer production capacity was 85,000 tonnes, and it shot in 1999-2000 to 11.07 million tonnes. The Phosphate fertilizer capacity of production increased remarkably. In 1951-52 it was 63,000 tonnes, in contrast to the production of 3.65 million tonnes in 1999-2000.

The fertilizer industry in India is developed, as it has both private and public sectors. There are several HYV programs, leading to fertilizers production and faster-irrigated area expansion. The urea introduction created high demand as it was a straight fertilizer and resulted in fertilizer production sharply.

Potassic fertilizers are met by India through various imports. However, India has a Urea requirement of 80%. It is dependent on imports heavily for phosphorous, potassium, and fertilizer requirements.

The fertilizer sector in India has improved to a great extent. It was in 1951-52 with 18.82% nitrogen fertilizer, and the production in actual was 16000 tonnes only, but the utilization rate capacity remarkably increased in 2004-05 to 82%, and the production achieved 12.03 million tonnes, an all-time high.