India Fertilizers - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026 - 2031)

According to Mordor Intelligence, the India fertilizers market size is projected to expand from USD 23.80 billion in 2025 and USD 25.30 billion in 2026 to USD 34.34 billion by 2031, registering a fastest-growing 6.08% CAGR between 2026 and 2031.

This report is Segmented by Type (Complex and Straight), by Form (Conventional and Specialty), by Application Mode (Fertigation, and More) and by Crop Type (Field Crops, and More). The Market Forecasts are Provided in Terms of Value (USD) and Volume (Metric Tons).

India Fertilizers Market Trends and Insights

Subsidy rationalization toward nutrient-based pricing

The 2024 overhaul of India's NBS framework moved the subsidy calculation from product-centric to nutrient-centric, correcting long-standing price distortions that once favored urea over balanced blends. During the 2024 kharif season, farmers responded with a 23% jump in complex fertilizer purchases as price parity encouraged switch-over from straight nitrogen. Enhanced quality norms now require specific micronutrient thresholds in NPK grades, nudging manufacturers into premium segments and attracting foreign entrants with fortified formulations. Adoption patterns remain uneven; Maharashtra and Gujarat already show double-digit gains, while urea-heavy belts across the Indo-Gangetic plains transition more slowly. Over the medium term, the policy is anticipated to steer the India fertilizers market toward value-added products, lift farm profitability through higher yields, and ease fiscal pressure by curbing excessive nitrogen use.

Rising adoption of drip irrigation and fertigation systems

Micro-irrigation coverage expanded in 2024 under the Pradhan Mantri Krishi Sinchayee Yojana, setting the stage for specialty, water-soluble fertilizer demand. The government's 2030 target promises a structural change from broadcast application to low-volume, high-frequency fertigation. Karnataka and Gujarat accelerate horticulture-led installations. Field trials show 30-40% nutrient savings and 20-25% yield gains, fortifying the business case for fertigation. International suppliers such as Haifa Negev and ICL Group reacted by building local plants that package water-soluble NPK grades tailored for the India fertilizers market. Over the long term, fertigation's precision-application advantage supports premium pricing, stabilizes farm input costs, and enriches soil health, collectively lifting demand for specialty inputs within the India fertilizers market.

Delayed subsidy reimbursements straining working capital

Manufacturers resorted to short-term loans at 12-15% interest to bridge cash gaps, squeezing margins and, in some cases, forcing production cuts. Liquidity stress rippled down the dealer chain, elongating credit terms and triggering input shortages during peak application periods. The government's Direct Benefit Transfer initiative only partly alleviated bottlenecks because reimbursement validation still requires multilevel clearances. Smaller companies bear disproportionate pain, raising the likelihood of exits or takeovers and aggravating the consolidation trend inside the India fertilizers market.

Other drivers and restraints analyzed in the detailed report include:

1. Government push for balanced nutrient management
2. Growing availability of nano-urea and nano-DAP
3. Volatility in imported ammonia and phosphoric acid prices

For complete list of drivers and restraints, kindly check the Table Of Contents.

Segment Analysis

Straight fertilizers controlled 80.9% of 2025 revenue in the India fertilizers market, with urea alone contributing roughly 65% of segment shipments. Urea's entrenched subsidy status, broad dealer footprint, and familiarity among farmers cement its lead. Micronutrient straights, such as zinc sulfate, posted impressive CAGRs due to widespread deficiency mapping. Complex fertilizers, though smaller in share, outpace the market with a 6.9% CAGR through 2031, underpinned by NBS parity that narrows the cost gap and by quality mandates requiring micronutrient enrichment.

Complex grades benefit from simplified logistics and balanced nutrient delivery, allowing farmers to match soil prescriptions without juggling multiple products. Manufacturers leverage integrated facilities to swing between grades and hedge price volatility in raw materials. With BNM driving balanced nutrition, demand for 10-26-26, 12-32-16, and 20-20-0 variants rises. The India fertilizers market for complex formulas is forecast to grow steadily as policy shifts and demonstration results demonstrate agronomic gains.

Conventional granules commanded 96.9% of 2025 sales, yet specialty categories represent the momentum pocket of the India fertilizers market, with a 6.5% CAGR through 2031. Water-soluble fertilizers lead specialty uptake in capital-intensive horticulture and protected cultivation. Controlled-release and slow-release urea, while costlier, promise 25-30% efficiency improvements that attract large growers. Specialty penetration reaches 15-20% in progressive states, compared to sub-5% levels in weaker extension states.

Conventional granules will maintain a significant share of the market given rice and wheat's reliance on broadcast practices. Still, environmental tightening and subsidy realignments will progressively tilt value toward specialty lines with higher growth in the forecast period. Companies bundle agronomy services with specialty products, reinforcing customer loyalty and buttressing margins inside the India fertilizers market.

Complete Report Scope:

• Type
  • Complex
  • Straight
    • Micronutrients
      • Boron
      • Copper
      • Iron
      • Manganese
      • Molybdenum
      • Zinc
      • Others
    • Nitrogenous
      • Urea
      • Others
    • Phosphatic
      • DAP
      • MAP
      • SSP
      • Others
    • Potassic
      • MoP
    • Secondary Macronutrients
      • Calcium
      • Magnesium
      • Sulfur
• Form
  • Conventional
  • Speciality
    • CRF
    • Liquid Fertilizer
    • SRF
    • Water Soluble
• Application Mode
  • Fertigation
  • Foliar
  • Soil
• Crop Type
  • Field Crops
  • Horticultural Crops
  • Turf and Ornamental

List of Companies Covered in this Report:

1. Chambal Fertilisers and Chemicals Limited (KK Birla Group)
2. Coromandel International Limited (Murugappa Group)
3. Gujarat Narmada Valley Fertilizers and Chemicals Limited (Govt. of Gujarat)
4. Haifa Negev Technologies Ltd.
5. ICL Group Ltd
6. Indian Farmers Fertiliser Cooperative Limited (IFFCO)
7. National Fertilizers Limited (Government of India)
8. Rashtriya Chemicals and Fertilizers Limited (Government of India)
9. Sociedad Quimica y Minera de Chile SA
10. Yara International ASA
11. Paradeep Phosphates Limited (Zuari-Maroc Phosphates Pvt. Ltd. & OCP)
12. Nagarjuna Fertilizers and Chemicals Limited (Nagarjuna Group)
13. Fertilizers and Chemicals Travancore Limited (FACT)
14. Deepak Fertilisers and Petrochemicals Corporation Limited
15. Krishak Bharati Cooperative Limited (KRIBHCO)

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support