Chemicals & Fertilizers - #SectorUpdates

The Indian fertilizer industry has been able to provide enhanced food security for the nation. Indian agriculture is heavily dependent on the use of fertilizers. It is expected that the Indian fertilizer market will reach a value of about INR 1,131 Billion by 2027, exhibiting a CAGR of 4.8% during 2021-2027 from INR 858 Billion in 2021.  In the financial year 2022, over 42 million metric tons of fertilizers were produced in India. Fertilizer subsidy has doubled in a short period of three years from INR 664,680 million in 2017-18 to INR 795,300 million for 2021-22 in the Union Budget. India is the 2nd largest consumer of Urea fertilizers after China. At the same time India also ranks 2nd in the production of nitrogenous fertilizers and 3rd in phosphatic fertilizers. Currently, the newly launched “One Nation, One Fertilizer” scheme will help in enhancing the productivity of agriculture of our nation, mitigating climate change effects on crops, providing an alternative to harsh chemical based fertilizers and balancing the fiscal impact of fertilizer subsidy on the Union Budgets for the coming years.

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