Indian Fertilizer Market Size, Share, Trends and Forecast by Product Type, Segment, Formulation, Application, and Region, 2026-2034

Indian Fertilizer Market Summary:

The Indian fertilizer market size was valued at INR 1,021 Billion in 2025 and is projected to reach INR 1,433.6 Billion by 2034, growing at a compound annual growth rate of 3.8% from 2026-2034.

The Indian fertilizer industry is a backbone of the country's agricultural system, as it provides necessary nutrients that improve the efficiency of crop production and the fertility of the soil. The rising food demand due to population growth, along with the government's efforts to modernize agriculture and maintain a balanced use of nutrients, is driving the growth of the fertilizer market. The use of high-yielding crop varieties that require higher fertilizer consumption, as well as increased awareness among farmers about soil health management, is boosting the Indian fertilizer market share.

Key Takeaways and Insights:

• By Product Type: Chemical fertilizers dominated the market with a share of 83% in 2025, driven by their extensive use in agriculture and ability to provide instant, predictable results for enhancing crop productivity and meeting growing food demands.

• By Segment: Urea leads the market with a share of 40% in 2025, owing to its high nitrogen content essential for crop growth, affordability through government subsidies, and widespread availability across agricultural regions.
   
• By Formulation: Dry represents the largest segment with a market share of 77% in 2025, attributed to ease of storage, transportation, and application along with longer shelf life compared to liquid alternatives.
   
• By Application: Farming dominates the market with a share of 95% in 2025, reflecting the critical role of fertilizers in enhancing productivity for staple crops including rice, wheat, sugarcane, and vegetables.
   
• By Region: North India holds the largest market share of 33% in 2025, driven by intensive agricultural activities in states like Punjab, Uttar Pradesh, and Haryana where cereal-dominated cropping patterns demand substantial fertilizer inputs.
   
• Key Players: The Indian fertilizer market exhibits a competitive landscape with state enterprises leveraging policy backing and extensive dealer networks alongside private manufacturers emphasizing operational efficiency and specialty product portfolios. Major players compete through technological innovation, distribution expansion, and strategic partnerships. Some of the key players operating in the market include Chambal Fertilisers and Chemicals Limited, Coromandel International Ltd., Deepak Fertilisers and Petrochemicals Corporation Limited, Gujarat Narmada Valley Fertilizers & Chemicals Limited, Gujarat State Fertilizers & Chemicals Limited (GSFC), Haifa Negev Technologies LTD, Indian Farmers Fertiliser Cooperative Limited (IFFCO), National Fertilizers Limited (NFL), Rama Phosphates Limited, Rashtriya Chemicals and Fertilizers Limited, Southern Petrochemical Industries Corporation Limited (SPIC), and Yara Fertilisers India Pvt. Ltd.

India stands as the second-largest fertilizer consumer globally, with agriculture contributing significantly to the national economy. In 2024, Indian Farmers Fertiliser Cooperative Limited (IFFCO) launched the “Nano Fertilizer Usage Promotion Mahaabhiyan,” offering farmers in 800 villages a 25 % subsidy on nano‑fertilizers such as Nano Urea Plus and Nano DAP to encourage sustainable and efficient nutrient use. The market is characterized by substantial government support through subsidy programs that make fertilizers affordable for farmers while ensuring food security. The sector is witnessing a transformation toward sustainable practices, including the adoption of biofertilizers, nano-fertilizers, and balanced nutrient management techniques. The Nutrient-Based Subsidy scheme continues to promote efficient fertilizer use by encouraging balanced nutrient application. Digital agricultural solutions, soil health monitoring systems, and precision farming technologies are increasingly being integrated into farming practices. The growing horticulture sector and changing cropping patterns are creating demand for specialized fertilizers tailored to specific crop nutrient requirements, further diversifying the market landscape.

Indian Fertilizer Market Trends:

Rising Adoption of Nano-Fertilizer Technology

The fertilizer industry is witnessing significant adoption of nanotechnology-based inputs that deliver nutrients through ultrafine particles for enhanced plant absorption. In India, nano fertilizer adoption continues to scale, with Nano Urea introduced in 2021 and Nano DAP in 2023. Sales reached approximately 26.5 million bottles of Nano Urea Plus and 9.7 million bottles of Nano DAP in FY 2024‑25, and companies like IFFCO are planning further nano micronutrient products such as Nano Zinc and Nano Copper to expand nutrient solutions. Nano-fertilizers offer superior nutrient use efficiency, enabling precise and controlled nutrient release while reducing environmental impact. These innovative formulations are gaining traction as farmers seek alternatives that provide higher productivity with lower input costs. The technology supports effective foliar application and substantially reduces the application of conventional fertilizers, aligning with sustainability goals.

Growing Shift Toward Sustainable and Organic Inputs

The market is experiencing a notable transition toward sustainable farming practices, with increasing awareness about environmental impacts of chemical fertilizers prompting adoption of biofertilizers and organic alternatives. In 2025, the Government of India launched the Rs 2,481 crore National Mission on Natural Farming (NMNF) to promote eco‑friendly agricultural practices across 750,000 hectares and benefit 10 million farmers by reducing dependence on synthetic inputs and enhancing soil health. Farmers are embracing eco-friendly practices to reduce soil degradation and enhance long-term fertility. Living formulations containing beneficial bacteria, fungi, and algae that fix atmospheric nitrogen and unlock bound nutrients are gaining popularity. This trend reflects broader agricultural transformation from volume-based approaches toward efficiency and sustainability.

Integration of Digital Agriculture and Precision Farming

The fertilizer sector is increasingly incorporating digital technologies for optimized nutrient management and application. In 2025, the Government of India approved the ₹ 2,817 crore Digital Agriculture Mission to build robust digital infrastructure including AgriStack, the Krishi Decision Support System, soil fertility mapping, and AI‑based advisory tools to support precision nutrient management and fertilization decisions. Smart agriculture technologies including sensor-based nutrient systems and drone-based fertilizer distribution are facilitating accurate fertilizer applications based on field-specific requirements. Soil health card programs provide crop-specific nutrient recommendations based on soil sample analysis, helping farmers optimize fertilizer use while reducing waste. This technological integration is enhancing overall farming efficiency and supporting balanced nutrient management practices.

Market Outlook 2026-2034:

The Indian fertilizer industry is set to grow at a steady pace due to the increasing needs of agricultural productivity, favorable government policies, and the growing need for food security due to population growth. The industry's shift towards value-based strategies, focusing on efficiency, robustness, and sustainability, will influence the future course of the industry. R&D in biofertilizers, nan-based fertilizers, and specialty products will open up new opportunities for growth, while digital agriculture will improve nutrient management practices. The market generated a revenue of INR 1,021 Billion in 2025 and is projected to reach a revenue of INR 1,433.6 Billion by 2034, growing at a compound annual growth rate of 3.8% from 2026-2034.

Indian Fertilizer Market Report Segmentation: 

Product Type Insights:

• Chemical Fertilizers
• Biofertilizers

The chemical fertilizers dominates with a market share of 83% of the total Indian fertilizer market in 2025.

Chemical fertilizers encompassing urea, diammonium phosphate, muriate of potash, and complex NPK formulations constitute the backbone of India's agricultural input sector. These fertilizers are essential for increasing crop yields and meeting the growing food demand of a large population, with farmers preferring them for their instant and predictable results. The segment benefits from extensive government subsidy programs that make these inputs affordable while ensuring agricultural productivity remains high. Large-scale farming operations across major agricultural states rely heavily on chemical fertilizers to enhance productivity and support national food security objectives.

The dominance of chemical fertilizers indicates their importance in facilitating intensive farming practices in the Indian agricultural sector. The use of these fertilizers ensures quick availability of nutrients, which is necessary for high-yielding varieties of crops that are the backbone of Indian agriculture. The distribution network of these fertilizers in rural areas ensures their easy accessibility, and research is also being conducted to develop efficient formulations that have less effect on the environment. The government is also supporting this sector through price regulation and subsidy programs.

Segment Insights:

• Complex Fertilizers
• DAP
• MOP
• Urea
• SSP
• Others

The urea leads with a share of 40% of the total Indian fertilizer market in 2025.

Urea remains the most widely consumed fertilizer in India, providing the essential nitrogen required for healthy crop growth and development. The segment's leadership position is underpinned by heavy government subsidies that keep prices affordable for farmers across all economic segments. Urea's versatility allows application across diverse crop types and soil conditions, making it indispensable for both small-scale and commercial farming operations. The Government of India has been actively expanding domestic urea production capacity, commissioning six new urea plants over recent years that added about 76.2 lakh metric tonnes of capacity, helping the country record its highest ever domestic urea output in 2023–24 and move toward reducing import dependency. Domestic production capacity continues to expand to reduce import dependency and ensure consistent supply throughout agricultural seasons.

Nitrogen-rich urea is most suitable for the rice-wheat crop rotation, which is common in the northern parts of India. Government programs to promote balanced fertilization are encouraging farmers to use urea in combination with other sources of nutrients for better soil health. The development of nano-urea technology is a major innovation in this category, which is more efficient and environmentally friendly than existing urea formulations. Production units in the country are upgrading their facilities to enhance efficiency and quality of production.

Formulation Insights:

• Liquid 
• Dry

The dry dominates with a market share of 77% of the total Indian fertilizer market in 2025.

Dry fertilizers continue to retain the leading market share due to the ease of storage, transportation, and handling, which suits the agricultural distribution system in India. Dry fertilizers have a longer shelf life and consistent nutrient content, allowing farmers to buy fertilizers in advance of the planting season without worrying about the quality. The granular and powdered forms of fertilizers can be applied in a variety of ways, including broadcasting and placement, depending on the type of farming and crops. The established process of manufacturing and distribution helps make dry fertilizers widely available in rural areas.

The preference for dry fertilizers is based on the realities of Indian agriculture, where storage spaces may not be temperature-controlled and transportation routes are long. Dry fertilizers are easier to handle using conventional farming equipment, and dealers can store them without requiring specialized storage space. However, liquid fertilizers are gaining popularity with the increasing adoption of precision farming, especially for foliar and fertigation applications in horticultural crops. The market is also changing with the development of new products with high efficiency, such as coated and slow-release fertilizers.

Application Insights:

• Farming
  • Grains and Cereals
  • Oilseeds
  • Fruits and Vegetables
  • Others
• Gardening

The farming leads with a share of 95% of the total Indian fertilizer market in 2025.

Agricultural farming constitutes the primary driver of fertilizer demand in India, reflecting the sector's critical importance to national food security and economic stability. In the Union Budget 2026‑27, the Government of India allocated ₹1.63 lakh crore to strengthen the agriculture sector, increasing investment in high‑value crop support, rural employment, and technology‑driven farming solutions to boost productivity and efficiency. Grains and cereals including rice, wheat, and maize account for substantial fertilizer consumption given their role as staple food crops for the population. The application of fertilizers in farming supports enhanced yields per hectare, enabling the country to meet domestic consumption requirements while maintaining export capabilities. Government procurement programs for food grains further incentivize farmers to maximize production through optimal input usage.

The farming application segment encompasses diverse cropping patterns across India's varied agro-climatic zones, each with specific nutrient requirements. Fruits and vegetables cultivation is emerging as a high-growth area within farming applications as dietary preferences shift and horticulture expands in states like Maharashtra, Karnataka, and Andhra Pradesh. Specialized fertilizer formulations tailored to specific crop needs are gaining traction among commercially oriented farmers seeking to maximize returns. The segment's dominance underscores fertilizers' fundamental role in sustaining agricultural productivity across India's farming landscape.

Region Insights:

• East India
• North India
• South India
• West India

North India exhibits a clear dominance with a 33% share of the total Indian fertilizer market in 2025.

The dominance of North India in fertilizer use is a result of the region being the main agricultural zone of the country, with the states of Punjab, Uttar Pradesh, and Haryana being the key contributors to the country's food basket. The rice-wheat cropping system, which is practiced on a large scale in these states, requires high fertilizer use to sustain the high level of productivity. The irrigation system and the farming practices in this region are conducive to proper fertilizer use. The government procurement points and the dealer network ensure that fertilizers reach even the remotest rural areas.

The agricultural importance of this region is due to the presence of fertile alluvial soil and favorable climatic conditions that support multiple cropping systems in a year. However, the high intensity of agricultural production has resulted in soil health problems such as nutrient deficiencies and micronutrient deficiencies, thereby creating a demand for balanced fertilizer use. The state government's support for soil testing and region-specific fertilizer use is encouraging farmers to adopt efficient fertilizer use practices. The presence of large fertilizer manufacturing units in the northern states is also helping to develop the fertilizer market in this region.

Market Dynamics:

Growth Drivers:

Why is the Indian Fertilizer Market Growing?

Government Subsidies and Policy Support

Government subsidies constitute a fundamental growth driver for the Indian fertilizer market, with substantial budgetary allocations ensuring fertilizer affordability for farmers across all economic segments. The subsidy framework encompasses urea under direct price control and phosphatic and potassic fertilizers under the Nutrient-Based Subsidy scheme, creating a comprehensive support system for agricultural inputs. For the Rabi 2025–26 season, the Union Cabinet approved a ₹37,952 crore subsidy allocation for phosphatic and potassic fertilizers under the NBS scheme to keep DAP and other non‑urea nutrients affordable for farmers despite global price volatility. These policies have been instrumental in maintaining steady fertilizer usage patterns, enhancing crop yields, and guaranteeing food security for the growing population. The government's commitment to agricultural sector support is reflected in annual budget allocations that prioritize fertilizer availability at reasonable prices, enabling farmers to access essential nutrients without excessive financial burden. Direct benefit transfer mechanisms are being implemented to improve subsidy targeting while reducing diversion, further strengthening the policy framework supporting market growth.

Rising Agricultural Productivity Requirements

India's expanding population creates massive and growing demand for agricultural products, making enhanced productivity essential for national food security. According to projections by the ICAR‑National Institute of Agricultural Economics and Policy Research, India’s aggregate food demand is expected to more than double by 2047 as the population approaches around 1.6 billion, intensifying pressure on agricultural systems to produce sufficient food. The need to feed a population projected to exceed one and a half billion by the end of the decade necessitates continuous improvement in crop yields through optimal nutrient management. Fertilizers play an indispensable role in meeting these productivity requirements, supporting the cultivation of high-yielding crop varieties that form the foundation of modern Indian agriculture. The adoption of improved farming practices, including balanced fertilization and precision agriculture techniques, is enabling farmers to achieve higher outputs per hectare of cultivated land. Changing dietary patterns and rising incomes are further driving demand for diverse food products, creating additional requirements for fertilizer inputs across various crop categories including cereals, pulses, oilseeds, and horticultural crops.

Technological Innovation and Product Development

The Indian fertilizer industry is experiencing significant technological transformation through innovation in product formulations and application methods. In August 2025, the development and commercialization of nano‑fertilizers represents a breakthrough that enhances nutrient use efficiency while reducing environmental impact; a major recent advance is India’s indigenous development of water‑soluble fertilizer technology after seven years of research, which aims to reduce dependence on Chinese specialty fertilizer imports and boost domestic innovation in nutrient delivery solutions. Biofertilizers incorporating beneficial microorganisms are gaining acceptance as sustainable alternatives that support soil health regeneration. Specialty fertilizers including water-soluble formulations, controlled-release products, and customized blends tailored to specific crop requirements are expanding the market's product portfolio. Digital agriculture integration through soil health monitoring systems and precision application technologies is optimizing fertilizer usage patterns. These innovations are attracting investments from domestic and international manufacturers seeking to capture emerging market opportunities, driving overall industry growth and modernization.

Market Restraints:

What Challenges the Indian Fertilizer Market is Facing?

Import Dependency and Supply Chain Vulnerabilities

India relies substantially on imports for key fertilizer raw materials and finished products, particularly potassic and phosphatic fertilizers, creating exposure to global price volatility and supply disruptions. Geopolitical uncertainties and international market dynamics can significantly impact domestic availability and pricing, affecting farmer access to essential inputs during critical agricultural seasons.

Environmental and Soil Health Concerns

Excessive and imbalanced fertilizer application over decades has contributed to soil degradation, nutrient depletion, and water pollution in intensive farming regions. These environmental challenges are prompting policy shifts toward climate-smart agriculture and sustainable practices, requiring the industry to adapt its products and approaches to address ecological concerns while maintaining productivity.

Subsidy Burden and Distribution Inefficiencies

The substantial fiscal burden of fertilizer subsidies creates ongoing budgetary pressures for the government, while distribution inefficiencies and product diversion concerns undermine the effectiveness of support mechanisms. Delayed subsidy reimbursements to manufacturers strain working capital availability, particularly affecting smaller producers and potentially impacting overall production stability, supply consistency, and timely fertilizer availability across the market.

Competitive Landscape:

The Indian fertilizer market exhibits a competitive landscape characterized by the presence of major state enterprises and private manufacturers competing across multiple product segments. Leading players leverage policy backing, extensive distribution networks, and established farmer relationships to maintain market positions. State-owned corporations benefit from government support and captive raw material access, while private manufacturers differentiate through operational efficiency, product innovation, and specialty portfolios. Technology is emerging as a key competitive differentiator, with companies investing in nano-fertilizer platforms, enhanced efficiency formulations, and digital agronomy solutions. Strategic acquisitions and joint ventures enable players to expand product offerings and geographic presence. The competitive environment is intensifying as domestic and international companies seek to capture growth opportunities in specialty and sustainable fertilizer segments.

Some of the key players include:

• Chambal Fertilisers and Chemicals Limited
• Coromandel International Ltd.
• Deepak Fertilisers and Petrochemicals Corporation Limited
• Gujarat Narmada Valley Fertilizers & Chemicals Limited
• Gujarat State Fertilizers & Chemicals Limited (GSFC)
• Haifa Negev Technologies LTD
• Indian Farmers Fertiliser Cooperative Limited (IFFCO)
• National Fertilizers Limited (NFL)
• Rama Phosphates Limited
• Rashtriya Chemicals and Fertilizers Limited
• Southern Petrochemical Industries Corporation Limited (SPIC)
• Yara Fertilisers India Pvt. Ltd.

Recent Developments:

• In April 2025, Agrifields DMCC announced plans to launch next-generation water-soluble fertilizer products in India by FY26, aiming to strengthen its presence in sustainable crop nutrition. The initiative focuses on improving fertilizer efficiency, enhancing crop yields, and supporting eco-friendly agricultural practices as demand grows for precision farming inputs in the Indian market.

Indian Fertilizer Market Report Scope: