New Delhi [India], February 27: With a lot of revolutions shaping the world lately, one of the most significant ones is happening in the global fertilizers market. The fertilizer sector is expected to witness a transformative period of robust growth, opening doors for more avenues.
In 2033, it’s all set to rise to USD 297.33 Billion, growing at a CAGR of 3.60% during the forecast period of 2025-2033. If we have a sneak peek into recent times, then the worth of the global fertilizers market was USD 216.27 billion in 2024 and this year, it’s expected to be around 224.05 billion.
PS Gahlaut, the managing director of Indian Potash Limited, believes, “It’s a golden period to discover more avenues for agricultural productivity and this can also serve as a ladder for the growth of farmers.”
Fertilizers have been one of the most instrumental agricultural inputs. They’re one of the key resources to catalyze and maximize the soil productivity which in turn elevates healthy growth in plants. The sources of fertilizers, however, have been both natural and synthetic. The organic ones are made from plant/animal sources like seaweed, worm castings, compost, manure and so on. While the synthetic ones are made from minerals, atmospheric nitrogen and inorganic waste materials. But they both contain three main macronutrients essential in modern agriculture: Phosphorus (P), Potassium (K) and Nitrogen (N). To use these fertilizers, the farmers make use of dry, pelletized and liquid methods along with large agricultural machinery and hand tools.
All in all, fertilizers – of every kind – have been very instrumental in boosting agricultural productivity. No wonder why with an increase in demand in food globally, the fertilizer market is expected to see a boom as well.
Due to an ever-growing population globally, there has been an increase in demand for these fertilizers. A spike in world population has eventually increased the demand of food which has in turn led to more demand for fertilizers that can catalyze the agricultural yields. Even in India, the demand is increasing particularly in regions like Punjab, UP and Maharashtra – the states that contribute significantly to the national consumption. With the Indian population expected to be 1.7 billion by 2064, the demand of agricultural products will only see a sharp rise.
However, another aspect to this phenomenon is the decline in the cultivable lands. FAO’s Resource Outlook to 2050 states that the planet’s land surface used for crop production is more than 1.5 Billion hectares – which is approximately 12%. There’s now more pressure on the existing crop yielding lands to have more crop production. Which again can be fueled by the usage of optimum fertilization. With so many factors at play, it’s vital to use the fertilizers in an optimal way which is also magnifying the world of the fertilizers market.
This challenge is met by the government through various measures. To ensure that agricultural production doesn’t decline, they’ve been offering support through incentives, subsidies, loans and other means. All of this has shielded farmers from the elevating cost of fertilizers. Considering the Indian market, the farmers here purchase urea at 30% of CIF – Cost Insurance and Freight prices. The government has kept the urea prices in control as compared to other fertilizers like DAP and MOP. Not only this, India also imports around 3 million tonnes annually. The government has also introduced programs like Soil health management to promote the efficient fertilizer usage. Thus various schemes and agreements to encourage more fertilizers are anticipated to boost the fertilizers market in the said period of 2025-2033. Not only in India, but the global market as well.
However, the increasing demand of fertilizers is also met with other challenges. The most important being the environmental consequences.
The negative impact of chemical fertilizers on the environment is a pressing issue that’s grabbing eyeballs and attention. Their excess use causes emission of greenhouse gases, may cause detrimental effects like fertilizer burn, deteriorate plant health and eventually hamper the agricultural productivity that it was supposed to enhance. The chemical fertilizer usage may even cause groundwater contamination and other irreversible environmental damage. All of these factors and the awareness of the harm they’re causing may pose a hindrance to the expected market growth.
But every problem comes with a solution. To reduce the negative impact on the environment, there are ways devised to reduce the environmental footprint of these fertilizers.
Companies like Indian Potash Limited (IPL) have emerged as a key player time and again to promote climate resilient farming practices. PS Gahlaut’s visionary leadership has often come up with solutions to tackle the same. Indian Potash Limited also serves as an example of a great technological development in the fertilizers industry to fight off the negative environmental challenges.
Another example is of Urea Deep Placement (UDP) technology in Bangladesh which reduced the consumption by 30-35% and increased the productivity by 15-18%. It was introduced by IFDC in 2016.
PS Gahlaut also mentions, “With great power comes great responsibility. Market growth shouldn’t happen at the expense of the environment and we should all come up with our own ways of reducing the negative environmental consequences. At Indian Potash Limited, we are striving to do the same.”
Another challenge is the micronutrient deficiency in plants and soil. Something that has been raising eyebrows globally. Food is being produced but if it’s lacking in the nutrients – then how good is it? – A question that’s been on discussion tables. Which is why there’s a massive involvement in research and development to introduce better micronutrient products. And this mission has achieved milestones as well.
During this forecast period of substantial growth in the fertilizer market, the cooperative sector will also have a key role to play. As they can make use of their network and outreach to rural areas, they can be pivotal in distribution of fertilizers to farmers. Along with government aid, they can offer discounts on the fertilizers, making it easier for the marginal farmers.
All of these challenges, along with the technical advancements will serve as a fuel to create more avenues for market growth for fertilizers globally. PS Gahlaut anticipates the period of 2025-2033 as not only a commercial growth in the arena of fertilizers, but also a new period of innovation and excellence in the industry.
If you have any objection to this press release content, kindly contact pr.error.rectification@gmail.com to notify us. We will respond and rectify the situation in the next 24 hours.
