Market Trends of india urea Industry
Manganese deficiency is a common problem in European countries, which most frequently affects sandy and organic soils with a pH above 6
- The area under field crop cultivation in the country increased by 3.5% during 2017-2022. The increased cultivation of cereals, pulses, and oilseeds in the country due to the rising consumer demand domestically and internationally is the major driving factor for the rising acreage.
- By crop type, rice, wheat, and soybean occupied the largest area under cultivation in the country, accounting for 47 million ha, 31.1 million ha, and 12.3 million ha in 2022. Rice is the most important food crop of India, covering about one-fourth of the total cropped area and providing food to about half of the Indian population. It is cultivated in almost all the states of the country, mainly in West Bengal, Uttar Pradesh, Andhra Pradesh, Punjab, and Tamil Nadu.
- Accordingly, rice consumption in the country increased from 95.8 million tons in 2016 to 107 million tons in 2022, which shows the rising demand for the crop in the country. This trend is further anticipated to drive the demand for fertilizers during 2023-2030. Similarly, wheat cultivation in the country increased from 98.5 million tons in 2017 to 107.6 million tons in 2020. It is cultivated majorly in Punjab, West Bengal, Haryana, and Rajasthan. Wheat is the second most important cereal crop in India and plays a vital role in the food and nutritional security of the country. Therefore, the intense cereal cultivation in the country, coupled with rising domestic and international demand, is anticipated to drive the Indian fertilizer market during 2023-2030.
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Among the primary nutrients, nitrogen is the most-applied nutrient in field crops.
- In 2022, the average application rate for primary nutrients stood at 125.1 kg/ha. Notably, nitrogen topped the list with an average application rate of 223.5 kg/ha. Given its significance as a primary nutrient, nitrogen plays a pivotal role in supporting high-yield crops like rice, which is extensively cultivated in the country. However, nutrient deficiencies, particularly in nitrogen, are hampering rice productivity nationwide. The soil health in India, as highlighted in the State of Biofertilizers and Organic Fertilizers report, is a cause for concern. It reveals a rising reliance on chemical fertilizers, with 97.0%, 83.0%, and 71.0% of tested soils showing deficiencies in nitrogen, phosphorous, and potassium, respectively.
- Among the major crops, wheat, rice, and corn/maize led the pack in nutrient application rates in 2022, averaging 231, 156, and 149 kg/ha, respectively. Wheat and rice, being staple foods both domestically and globally, face challenges due to multiple nutrient deficiencies. Apart from nitrogen, phosphorous, and potassium, these crops also require micronutrients like sulfur, boron, iron, and zinc for optimal growth. Effective nutrient management is crucial for boosting crop production, thereby fueling market growth.
- Field crops, especially grains and cereals, have a voracious appetite for primary nutrients, particularly nitrogen fertilizers. Given the extensive cultivation of these crops in India, the soil's nutrient content is rapidly depleting. Consequently, farmers are increasingly relying on fertilizers to bridge the gap, a trend projected to drive the market from 2023 to 2030.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- The horticulture sector has witnessed a consistent expansion driven by the rising consumer appetite for fruits and vegetables
- More than half of India’s cultivated land now has access to assured irrigation
- Among the primary nutrients, nitrogen is used in larger amounts to aid in rapid vegetative growth and the production of fruits
