Globally, the Green Markets Weekly North America Fertilizer Price Index continued to rise in September 2024. The index hit near 527 mark in last week of September 2024- recording highest level in six months. 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.

Global NPK fertilizer market size anticipated to experience significant growth over coming decade

According to Value Market Research, the global NPK fertilizer market size is anticipated to experience significant growth, with its market size projected to reach approximately USD 137.98 billion by 2032. This increase represents a notable rise from USD 99.59 billion in 2023. The market is expected to grow at a compound annual growth rate (CAGR) of 3.69% over the study period from 2024 to 2032. This growth is driven by the increasing demand for efficient agricultural practices and the rising need for enhanced crop yields to meet the nutritional requirements of a growing global population. The NPK fertilizer market is integral to enhancing agricultural productivity and ensuring food security. As technology advances and sustainability becomes a central focus, the market is set to evolve, offering new solutions and opportunities for farmers worldwide. The global NPK fertilizer market is pivotal to modern agriculture, providing essential nutrients that enhance crop growth and yield.

Sustainable farming needs accessible and affordable financing says RBI deputy governor

Swaminathan J, Deputy Governor, Reserve Bank of India noted in a latest speech that achieving agricultural sustainability will be a key priority for all economies where agriculture is a major sector. This will involve transforming conventional farming practices into technology-driven systems, enhancing agricultural commodities' processing and preservation techniques, contributing to value addition at the farm level. He opined that sustainable agricultural practices are necessary, but they are often more expensive to implement than conventional methods. Sustainable practices like organic farming, climate-smart technologies, and modern irrigation systems may seem costly upfront, but they offer long-term benefits by improving productivity, resilience, and environmental stewardship. Without accessible and affordable financing options, the much-needed shift to sustainable farming practices will remain a distant dream for many.

Outlook:

The latest wholesale price index for fertilizers and nitrogen compounds stood at 143.20 in August 2024, up 1.27% on year. Prices have mostly held in tight range this year. A major push to demand will emerge only after the kharif harvesting gets over and farmers get ready for rabi plantings. A constant policy push for agricultural sustainability is likely to lead to an incremental usage of organic fertilizers over the years. This can have long term implications for local fertilizers market.