India is the second biggest consumer of fertilizer in the world next only to China In the financial year 2020, there were 32 large size urea manufacturing plants in India. India is one of the leading producers of this fertilizer.
The overall fertilizer consumption in India has grown at a CAGR of 2.0% from 50.6 million tonnes in FY2009 to 61.4 million tonnes in FY2020. In FY2020, the sales volumes for fertilizers grew at a moderate rate of 6.0% to 61.4 million tonnes in FY2020 from 57.8 million tonnes in FY2019, following the healthy monsoons.
While urea sales grew by 5.9% to 33.6 million tonnes in FY2020 from 31.7 million tonnes in FY2019, non-urea sales grew by 6.1% to 27.8 million tonnes in FY2020 from 26.2 million tonnes in FY2019. The Indian fertilizer market exhibited moderate growth during 2015-2020.
Fertilizers are one of the key factors responsible for the success of India's green revolution and subsequent self-reliance in food-grain production. The increase in fertilizer consumption has contributed significantly to sustainable production of food grains in the country. As a result, the demand of fertilizers has witnessed double digit growth rates over the past several years. Looking forward the Indian fertilizer market is to grow at a CAGR of 5.50% during 2021-2026.