Year 12 | 26 January 2020 | email@example.com
As agriculture in India is largely dependent on the monsoon, high rainfall resulted in higher usage of fertilizers with the purpose of improving crop yields
The Fertilizer market in India has grown considerably, over the period, FY’2006-FY’2013, at a CAGR of 3.4% on account of increase in the demand of fertilizers led by increase in the demand of food from burgeoning population. Rapid expansion of irrigation, the spread of HYV seeds, introduction of the retention price scheme, distribution of fertilizers to farmers at affordable prices, expansion of the dealer network, and an improvement in fertilizer availability have aided the growth of the market over the last few years. Fertilizers have played an important role in increased crop production, especially in cereals, and will continue to be a foundation stone of the technology-driven agriculture required to feed the expanding population. Fertilizers stock up the nutrients removed from soils by harvesting crops, encourage adoption of high-yielding varieties, and increase biomass in the nutrient deficient soils of the tropics.
However, it was observed due to price volatility in FY’2008, the revenue of fertilizer companies in India was greatly impacted, due to the global meltdown followed by the global food crisis, which resulted in an increase in the prices by major fertilizer suppliers to pursue higher profits. As a result, there was a decline in the overall consumption of fertilizers in the country, resulting in an inventory pile up.
Fertilizer is essential to enhance food productivity and thereby as food grain production increases, the demand of fertilizers also witnessed an upward movement. As agriculture in India is largely dependent on the monsoon, high rainfall resulted in higher usage of fertilizers with the purpose of improving crop yields. On the other hand, factors such as increase in the prices of raw materials, price hike in natural gas and environmental degradation by fertilizers are identified as hindrance to the revenue of the industry
The fertilizer market in India is majorly categorized into organic and inorganic fertilizers. The inorganic fertilizers are further bifurcated into macronutrients and micronutrients which are required for a plant’s growth.
The production of urea in India is largely held by companies such as Indian Farmers Fertilizer Co-operative Limited (IFFCO), National Fertilizer Limited (NFL), Chambal Fertilizers and Chemicals Limited (CFCL) and Rashtriya Fertilizers and Chemicals Limited (RFCL (http://#_Abbreviations)) which together accounted for 54.5% of the overall production of urea in FY’2012
According to the research report “The India Fertilizer Market Outlook to FY’2018- Policy Initiatives on Urea to Enhance Growth, the demand for fertilizer, crop protection and crop nutrition is expected to surge in the coming few years as demand for food is increasing. With the increasing pace of population growth and shrinking of arable land, India needs to take various initiatives to increase the productivity and fulfill the needs of the growing population which will lead to an increase in the demand of fertilizers and hence lead to an incline in the overall revenue of the industry” by Ken Research, the India fertilizer Market would grow at a CAGR of 3.78% from FY’2014-FY’2018, thus reaching USD 60,778.6 million by 2018 due to increasing food grains demand by escalating population.
According to the research report” The India Fertilizer Market Outlook to FY’2018- Policy Initiatives on Urea to Enhance Growth, the fortune of fertilizer industry is highly dependent on factors such as population growth, government policy and regulation including incentives and subsidies to lower the cost of fertilizers to the farmers”
The report provides detailed overview on the fertilizer market of India. This report helps reader to identify the ongoing trends in the industry and anticipated growth in future depending upon changing industry dynamics in coming years. The report will help industry consultants, fertilizer manufacturing companies and other stakeholders to align their market centric strategies according to ongoing and expected trends in future.
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by S. C.
06 may 2013, World News > Asia