Meanwhile, the global fertilizer market outlook is steady. Allied Market Research has published a report, titled, "Fertilizer Market by Type (Organic, Inorganic), by Form (Dry, Liquid), by Application (Agriculture, Horticulture, Gardening, Others): Global Opportunity Analysis and Industry Forecast, 2021-2030." The report states that the global fertilizer market is anticipated to hit $251.57 billion by 2030. The market was valued at $184.60 billion in 2021 and is expected to display the fastest growth with 3.55% CAGR during the forecast period of 2022 to 2030.

The global fertilizer market is expanding rapidly due to factors such as development in physical and chemical properties of soil, promotion of microorganism reproduction, and benefits of fertilizers like surge in soil water retention capacity. Additionally, enhanced soil nutrients coupled with heightened crop yield with application fertilizers drives the market expansion. However, the bad impacts of chemical fertilizers on the arable soil hamper the market growth to some extent. Nevertheless, an increase in demand for organic fertilizers is anticipated to offer lucrative growth opportunities to the market in the future.

Interim Union Budget 2024

Finance Minister NirmalaSitharaman announced that application of nano DAP on various crops. Sitharaman said that after the successful adoption of nano-urea, application of nano-DAP on various crops will be expanded in all agro-climatic zones. The FM has allocated Rs100 crore for promotion of organic fertilizers during FY25 against Rs6 crore in FY24 (RE). A new scheme for promotion of organic fertilizers providing Market Development Assistance (MDA) and promotion of Research and Development as GOBARdhaninitiatives, was introduced in 2023. The PM-PRANAM scheme was also launched last year to grant financial incentive under a formula to states if they reduce usage of chemical fertilizers.

Meanwhile, the urea subsidy in the Revised Estimates (RE) for FY24 has been scaled down to Rs1.29-lakh crore from Rs1.31-lakh crore (BE). The government has allocated Rs1.19-lakh crore as urea subsidy for FY25. On the other hand, the subsidy for phosphatic (P) and potash (K) fertilizers has been raised to Rs60,300 crore in RE from Rs44,000 crore in BE of current fiscal and has been provisioned Rs 45,000 crore for FY25. For the Rabi season 2023-24, the government had fixed the subsidy for P atRs20.82/kg and K at Rs2.38/kg, under the nutrient-based subsidy scheme.

Outlook:

India’s rabi sowing continued to progress at a tepid compared to last year. According to agri ministry data, the area under total rabi crops stood at 687 lakh hectares as on 19th January 2024, down around 0.30% compared to year ago level.Domestic fertilizer prices have been easing on a continued basis in recent months. The wholesale price index or WPI of fertilizers and nitrogen compounds stood at 142.60 in December 2023, down 3.20% on year, recording sixth straight drop in the index. The index also fell by 0.21% on a monthly basis. Meanwhile, North America Fertilizer Price index have been witnessing continued edged up in mid-December 2023, rebounding from a four month low near 500 and hit four month high of 575 in February 2024.