In the financial year 2022, over 42 million metric tons of fertilizers were produced in India. India’s production of urea, DAP, and NPKs experienced a year-on-year increase of 14%, 3%, and 7%, respectively in FY 2022-23. During this period, the total production of urea, DAP, and NPKs amounted to 26.1 million tons, 4.0 million tons, and 8.7 million tons, respectively.
![2022-2023 Indian Fertilizer Industry 2022-2023 Indian Fertilizer Industry](images/fertilizer.jpg)
Sales of urea and DAP increased by 10% and 15%, respectively, while sales of MOP and NPK decreased by 33% and 12%, respectively.
• India is the second biggest consumer of fertilizer in the world next only to China.
• The India Fertilizers Market stood at 28.56 billion USD in 2022 and is projected to register a CAGR of 6.25% to reach 41.08 billion USD in 2028.
Challenges for the Fertilizer Industry• High government subsidies on Urea and DAP
• Companies are obliged to sell at MRP, with their higher cost of production or imports being reimbursed as subsidy by the Centre.
• Small Farmer Inability to derive full benefits.
• Heavy Import dependence.
• Entire potash requirement and 20 per cent urea requirement is met through imports.
• The use of nitrogen (N), phosphorous (P) and potassium (K) in the country has over the last few years sharply deviated from the ideal NPK use ratio of 4:2:1.
• Worsening of soil quality
• Environmental concerns and nutrient imbalance owing to rampant fertilizer usage.
• The India Fertilizers Market is fragmented, with the top five companies occupying 28.93%.
• Black market and corruption in the Indian fertilizer market.