The Green Markets Weekly North America Fertilizer Price Index continued to edge up after testing one year low. The index slipped under 500 mark in May this year but is near 520 mark in last week of August 2024. Prices are still down modestly compared to their one year ago levels. Meanwhile, the World Bank’s fertilizer price index remained relatively stable during the second quarter of 2024, following a 20 percent drop in the first quarter. The index is 24 percent lower than it was a year ago, primarily due to a significant decline in phosphate rock prices (-56 percent) and potassium prices (-17 percent). This broad weakness is attributed to improved production prospects driven, for the most part, by lower input costs. In the second quarter of 2024, the fertilizer affordability index (the ratio of fertilizer prices to food prices) reached its 2015-19 average level.

Indian Biogas Association highlights use of organic elements

The Indian Biogas Association (IBA) calls for the government to make state-owned fertiliser marketing companies adopt more of fermented organic manure to boost the sector, adding that the fermented organic manure market can reduce India's fertiliser import costs by at least $1.5 billion.

Compressed biogas (CBG), which can be produced from the manure can also help the government meet its cleaner energy targets before 2030, PTI wrote, quoting IBA Chairman Gaurav Kedia, who added that biogas is a highly underutilised opportunity.

India's fertiliser import bill was $12 billion in the year 2020-21 and it is poised to go up to $20 billion by 2030, according to the report. India currently produces 1 million metric tonnes per annum (MMTA) of fermented organic manure, which can increase up to 7 million tonnes, with 570 plants upcoming, Kedia told PTI, adding that the increased potential can serve almost a state like Rajasthan fully.

Globally also, organic fertilizers are gaining god traction. According to Polaris Market Research, the Global Organic Fertilizers Market was valued at USD 7.07 billion in 2023 and is anticipated to generate estimated revenue of USD 18.48 billion by 2032, with a CAGR of 11.3% from 2024 to 2032. Organic fertilizer is also referred to as organic manure. Mainly, it indicates compost created from animal refuse or animal or plant remnants that are copious in organic by-products. For instance, guano, parched and powdered blood, ground bone, squashed shells, exquisitely crumbled fish, phosphate rock, and wood. The nutrient constituents embedded in organic fertilizer are predominantly inorganic condition so it is arduous for crops to utilize them instantly. By way of the activity of microorganisms, an assortment of nutrient components is discharged gradually to offer nutrients to plants constantly.

Outlook:

Broad undertone is supportive for fertilizers sector given that agriculture remains a key priority area for the government. Finance Minister Nirmala Sitharaman during her budget 2024 speech said agriculture is one of the priorities of the government. The government will undertake comprehensive review of agricultural research and focus on developing climate resilient varieties in agriculture. The fertilizer subsidy in Fiscal Year 2023-24 has exceeded Revised Estimates (RE) by over Rs 6,500 crore. In June 2023, the government had extended urea subsidy scheme up to March 31, 2025. Meanwhile, near term outlook is positive for the sector amid positive rainfall. India recorded around 16 per cent more rainfall than normal in August, with above normal rains expected to continue in September, weather department noted.