India Fertilizer Market Size and Forecast 2026–2034

India’s fertilizer sector is poised for steady and strategic expansion over the next decade, supported by rising food consumption, rapid population growth, and increasing pressure on agricultural productivity. According to Renub Research, the India Fertilizer Market is projected to grow from US$ 44.62 Billion in 2025 to US$ 75.96 Billion by 2034, registering a CAGR of 6.09% during 2026–2034.

As India continues to strengthen food security while facing land constraints and soil quality concerns, fertilizers remain central to agricultural output. With government-backed subsidy programs and increasing adoption of modern farming techniques, the fertilizer market is entering a phase of balanced yet consistent growth.

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India Fertilizer Market Outlook

Fertilizers are organic or inorganic substances added to soil to supply essential nutrients such as nitrogen (N), phosphorus (P), and potassium (K). These nutrients are critical for crop growth, soil fertility restoration, and yield improvement.

In India, fertilizers are indispensable due to:

• High population-driven food demand

• Limited availability of arable land

• Intensive multi-cropping systems

• Irrigation-based agriculture

• Declining soil nutrient balance

Fertilizers in India are broadly classified into:

• Chemical fertilizers

• Organic fertilizers

• Biofertilizers

• Water-soluble and specialty fertilizers

Given the country’s agricultural dependency, fertilizer usage remains structurally embedded in India’s rural economy.

Key Growth Drivers of the India Fertilizer Market

1. Rising Food Demand and Population Growth

India is the world’s most populous country, and its food requirements continue to expand. In April 2023, India’s population crossed 1.42 billion, overtaking China. With projections indicating continued growth toward the 2060s, agricultural productivity must increase to meet consumption needs.

However, cultivable land expansion remains limited. As a result, improving yield per hectare has become the primary strategy to boost food production. Fertilizers play a vital role in replenishing nutrients lost due to intensive farming practices.

Growing demand for:

• Cereals (wheat and rice)

• Pulses

• Fruits and vegetables

• Oilseeds

is directly driving fertilizer consumption. In India, fertilizer demand remains structurally resilient, as food production cannot be compromised.

2. Strong Government Support and Subsidy Programs

Government intervention is a defining feature of India’s fertilizer market. Subsidies on urea, DAP (Di-Ammonium Phosphate), and NPK fertilizers ensure affordability for farmers.

Key policy drivers include:

• Nutrient-Based Subsidy (NBS) scheme

• Direct Benefit Transfer (DBT) system

• Soil Health Card initiative

• Promotion of balanced fertilization

• Neem-coated urea policy

Government-backed programs such as PM-KISAN and food security schemes indirectly support fertilizer demand by strengthening agricultural stability.

Additionally, India is investing in nano-liquid fertilizers to improve efficiency and reduce misuse. Plans to expand nano urea production facilities signal a strategic shift toward innovation and self-reliance.

By 2025, the government aims to expand nano-liquid fertilizer manufacturing capacity significantly, targeting production of millions of bottles annually.

3. Adoption of Modern Farming Practices and Technology

India’s agricultural transformation is accelerating through mechanization, precision farming, and improved irrigation infrastructure.

Modern farming practices encourage:

• Efficient nutrient application

• Use of high-yielding seed varieties

• Soil testing and data-based fertilizer use

• Micro-irrigation systems

In August 2025, the Ministry of Mines successfully developed indigenous water-soluble fertilizer technology after seven years of research. This innovation could reduce import dependency and position India as a global exporter of specialized fertilizers.

As agricultural modernization continues, fertilizer consumption is expected to grow in both traditional and specialty segments.

Key Challenges in the India Fertilizer Market

Imbalanced Fertilizer Usage and Soil Health Degradation

One of the most pressing issues in India’s fertilizer landscape is nutrient imbalance. Urea, heavily subsidized, is often overused compared to phosphorus and potassium fertilizers.

Consequences include:

• Soil nutrient depletion

• Reduced long-term productivity

• Environmental degradation

• Groundwater contamination

Improving farmer education and promoting balanced fertilizer application remain critical challenges.

Dependence on Imports and Rising Production Costs

India heavily relies on imports for raw materials such as:

• Phosphate rock

• Potash

• Natural gas

Global price volatility and supply chain disruptions significantly impact fertilizer costs and availability. While government subsidies stabilize retail prices, they strain public finances.

Reducing import dependency and boosting domestic manufacturing capacity remain long-term strategic priorities.

Segment Analysis

India Urea Fertilizer Market

The urea segment dominates the Indian fertilizer market due to its importance as a nitrogen source. Urea supports crops such as:

• Wheat

• Rice

• Pulses

• Oilseeds

• Sugarcane

Government subsidies and the promotion of neem-coated urea have improved efficiency and reduced diversion for non-agricultural use.

Despite misuse concerns, urea remains central to India’s agricultural productivity.

India MOP (Muriate of Potash) Fertilizer Market

MOP addresses potassium deficiencies and supports plant health, disease resistance, and water balance.

Key applications include:

• Sugarcane

• Fruits and vegetables

• Oilseeds

India lacks domestic potash reserves, making this segment entirely import-dependent. Government price regulation ensures affordability, but supply vulnerabilities remain a concern.

As awareness of potassium’s importance increases, MOP consumption is expected to grow steadily.

Cooperative Fertilizer Market

Cooperatives play a crucial role in fertilizer distribution, especially in rural and interior regions.

Their strengths include:

• Wide rural network coverage

• Farmer education programs

• Affordable pricing

• Timely availability

Government support enhances their operational efficiency, ensuring equitable access for small and marginal farmers.

Public Sector Fertilizer Market

Public sector enterprises ensure national fertilizer security by maintaining production and supply stability.

With financial backing from the government, public sector companies produce fertilizers at controlled prices, contributing to food security goals.

Private Sector Fertilizer Market

Private players are driving innovation and diversification. Investments in:

• Specialty fertilizers

• Micronutrients

• Water-soluble fertilizers

• Customized nutrient solutions

are expanding the market landscape.

The private sector complements public and cooperative distribution channels while introducing technological advancements.

State-Wise Market Insights

Punjab Fertilizer Market

Known as the “breadbasket of India,” Punjab relies heavily on fertilizers for wheat and rice cultivation. High irrigation levels and intensive farming drive substantial urea and DAP consumption.

However, soil degradation concerns are prompting increased soil testing and sustainable practices.

Uttar Pradesh Fertilizer Market

Uttar Pradesh, with extensive agricultural land and diverse crops, remains one of the largest contributors to fertilizer demand.

Crops such as wheat, rice, and sugarcane require significant nutrient input. Government subsidies and rural distribution networks ensure accessibility.

Madhya Pradesh Fertilizer Market

Madhya Pradesh’s growth is driven by soybean, wheat, and pulse cultivation. Expansion of irrigation facilities and soil health programs supports balanced fertilizer usage.

Tamil Nadu Fertilizer Market

Tamil Nadu’s diversified cropping pattern, including rice, sugarcane, cotton, and horticulture, drives consistent fertilizer consumption. High cropping intensity and limited land availability encourage balanced nutrient application.

Market Segmentation

By Fertilizer Type

• Urea

• DAP

• MOP

• Complex Fertilizers

By Sector

• Public Sector

• Cooperative Sector

• Private Sector

By State

• Andhra Pradesh

• Bihar

• Chhattisgarh

• Gujarat

• Haryana

• Jammu and Kashmir

• Jharkhand

• Karnataka

• Kerala

• Madhya Pradesh

• Maharashtra

• Odisha

• Puducherry

• Punjab

• Rajasthan

• Tamil Nadu

• Telangana

• Uttar Pradesh

• Uttarakhand

• West Bengal

Competitive Landscape

Key players operating in the India fertilizer market include:

• Nagarjuna Fertilizers and Chemicals Ltd.

• Chambal Fertilisers & Chemicals Ltd.

• Rashtriya Chemicals & Fertilizers Limited

• National Fertilizers Ltd.

• Coromandel International Ltd.

These companies are evaluated across five dimensions:

• Company Overview

• Key Personnel

• Recent Developments

• SWOT Analysis

• Revenue Analysis

Competition is increasingly focused on innovation, domestic capacity expansion, and specialty fertilizer development.

Future Outlook: 2026–2034

The India Fertilizer Market is expected to maintain steady momentum over the next decade. With projections reaching US$ 75.96 Billion by 2034 at a 6.09% CAGR, structural drivers such as population growth, food security priorities, and agricultural modernization will remain strong.

Emerging trends likely to shape the market include:

• Expansion of nano fertilizers

• Greater focus on balanced nutrient application

• Rise in specialty and water-soluble fertilizers

• Domestic raw material sourcing

• Precision agriculture integration

Government reforms, technological advancement, and sustainability initiatives will determine long-term resilience.

Final Thoughts

India’s fertilizer industry stands at a strategic crossroads between growth and sustainability. With food security at the heart of national policy and agriculture supporting millions of livelihoods, fertilizers will remain indispensable.

While challenges such as import dependency and soil degradation persist, innovation, subsidy reforms, and modernization are creating a more balanced and resilient ecosystem.

As Renub Research projects the market to grow to US$ 75.96 Billion by 2034, the India Fertilizer Market is poised not only for expansion but also for transformation—toward smarter, more sustainable, and productivity-driven agriculture.