India complex fertilizer market
is highly competitive and concentrated with top 5 players comprising for over
~% of the market share, in terms of revenue in FY’2017. In terms of complex
fertilizer production, the top 5 players accounted for about ~% of market share
as of FY’2017. There are about 13 companies (3 public, 1 cooperative and 9
private companies) engaged in the production of complex fertilizer in India.
India fertilizer industry is of very critical
importance to the Indian Economy as it manufacturers raw material for agriculture
purposes, which is the major occupation of the country. Agriculture is
livelihood to 58% of the country's population and contributes up to 14% to the
economy. The country has second largest arable land and is partly
self-sufficient in meeting its nitrogen fertilizers, but it is primarily
dependent on imports for its potash and phosphate needs. India has limited
amount of rock phosphate of low grade which can only be utilized for production
of SSP. The fertilizer industry is highly regulated and monitored by the
Government of India. India has 21 units which produce DAP and complex
fertilizers as of FY’2017.
The monsoon in India is closely watched for
agricultural activities as the agriculture and fertilizer sector is highly
dependent on monsoons. Straight fertilizers such as Urea and DAP are highly
subsidized in the country by the Indian government. In the case of complex
fertilizers, the share in total subsidy has been on a declining trend due to
partial decontrol of the sale price. Consumption of complex fertilizers
declined at a CAGR of ~% during the period FY’2012-FY’2017, whereas, production
grew marginally at a CAGR of ~% during FY’2012-FY’2017. Monsoon, on which a
major part of agriculture depends, was erratic and inconsistent. Furthermore,
decline in prices of complex fertilizers coupled with slump in consumption
resulted in decline of the complex fertilizers market in the country.
India imported about ~ thousand MT of NPK fertilizers
during 2016, majorly from Russia. Imports declined in 2016 by as much as ~% as
compared to 2015. Incline in domestic production of NPK fertilizers and lesser
monsoon rainfall resulted in a decline in import demands during 2016. Imports
of NPKs have been heavily dependent on the agro-climatic conditions of the
country. Hence, imports have registered sharp incline and/or decline in the
last few years.
Russia was the biggest exporters of NPK fertilizers to
India as of 2016, contributing about ~% of the overall NPK imports of the
country (in terms of volume). Latvia, Estonia and China were other major import
destinations for India and accounted for ~%, ~% and ~% of the total NPK
imports, respectively in 2016.
Granulated/fused form of complex fertilizers was
widely used in India such that about ~% of all complex fertilizers utilized in
the country were of granulated or fused form. Tata Chemicals Limited (TCL),
Coromandel International and Zuari Fertilisers and Chemicals Limited are the
only companies known to have invested and established blending plant facilities
for customized NPK production. However, the production capacities of these
plants are very small and farmers are reluctant in experimenting new grades of
NPKs. TCL was the first company in India to establish blending plant facility
at Babrala, Uttar Pradesh in 2009. Major blended NPK grades sold include NPK
10-18-25, NPK 7-20-18 and NPK 19-19-19
Coromandel international was the market leader and
comprised for ~% market share in FY’2017, in terms of revenue. The company
produced around 2.4 million MT of complex fertilizers during FY’2017. IFFCO
emerged as the second largest player in this space and comprised for ~% market
in 2017. Other prominent players included Paradeep Phosphates, Rashtriya
Chemicals and Fertilizers Limited, Fertilizers and Chemicals Travancore, Gujarat
State Fertilizers & Chemicals Limited and Gujarat Narmada Valley
Fertilizers & Chemicals Limited which comprised for market shares of ~%,
~%, ~%, ~% and ~%, respectively in FY’2017.
The Direct Transfer Benefit will soon be deployed
across the country from 2018 onwards, since the pilot projects have indicated a
success. The Point of Sales (PoS) machines will capture details of the farmer
including Aadhaar number, details of the retailer, product purchased, farm land
in which the commodity is used, health of the soil, land ownership details if
available and the opening and closing stock of every retailer. This will help
to bring soil health in focus and curb any pilferages and leakages in the
subsidy reimbursement process as every sale made will be recorded in the POS
machine. The process will streamline and enable in quick subsidy disbursal to
the manufacturers within weeks and it will ensure the fertilizer is received by
the farmer himself. Timely outgo of the subsidy will further revive the profits
of the companies and also help in reducing the working capital pressures in the
long run. Several companies including the likes of Coromandel International,
Paradeep Phosphates and Fertilizers and Chemicals Travancore have announced
investments to increase their production capacity of complex fertilizers.
Key Topics
Covered in the Report:
India Complex Fertilizer Demand
India Complex Fertilizer Consumption
India Complex Fertilizer Production
India Complex Fertilizer Market growth
India Granulated NPK Consumption
India Blended NPK Consumption
India NPK Fertilizer Demand
India NPK Fertilizer Consumption
India NPK Fertilizer Production
India NPK Fertilizer Market
Blended and granulated NPKs Sales
Water soluble NPKs Revenue India
Slow release NPKs Consumption India
Coromandel International Complex Fertilizer India
IFFCO Market share Complex Fertilizer
Future Complex Fertilizer India
Grade wise Sales Complex Fertilizer India
India Complex Fertilizer Market
Size
India Complex Fertilizer Market
Trends
India Complex Fertilizer Market
Analysis
India Complex Fertilizer Market
Competition
India Complex Fertilizer Market
Future Outlook
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