Market Trends of Sulfur Fertilizer Industry
Sulfur deficiency in Soil and Rising Oilseed Production are Fueling the Market
Sulfur deficiency in soil is increasing the global demand for sulfur fertilizers across various crops. Farmers are adopting these fertilizers to enhance plant growth and productivity, aiming to maximize yields. The Sulphur Institute reports that applying 1 kg of sulfur to wheat crops has resulted in a yield increase of 19 kg per hectare. Sulfur is the fourth major nutrient for plants, with oilseeds having a higher sulfur requirement compared to other crops. According to the USDA, global oilseed production reached 657.56 million metric tons in 2023-2024, a 3% increase from the previous year's 637.99 million metric tons. This rising yield indicates the increased use of sulfur fertilizers worldwide.
Many agricultural soils, particularly those under intensive cultivation, are becoming deficient in sulfur. Indian soils, for example, exhibit significant sulfur deficiency, necessitating supplementary sulfur inputs. Farmers primarily address this through various grades of sulfur-containing fertilizers. The Fertilizer Association of India's annual review reports that India imported 1.34 million metric tons of sulfur in FY 2022-2023, supplementing its domestic production of 2 million metric tons.
The Asia-Pacific Region Dominates the Market
The Asia-Pacific region leads the sulfur fertilizer market, driven by increasing demand for high-quality agricultural produce and expanding agricultural practices. The region's growing population, shrinking arable land, and rising food demand contribute to market growth. China and India are the primary consumers of sulfur fertilizers in the Asia-Pacific. According to UN DESA, in 2023, India and China each had a population of 1.4 billion, making them the two most populous countries in the region.
The rising oilseed production in Asia-Pacific is increasing the import of sulfur fertilizers to meet farmer requirements. USDA data shows that China's oilseed production grew from 67.94 million metric tons in 2022-2023 to 69.08 million metric tons in 2023-2024. Government financial support in the region is also encouraging farmers to use sulfur fertilizers. For example, the Indian government approved a subsidy of INR 1.89 (USD 0.021) per kg for sulfur fertilizers for the kharif season in 2024, as reported by the Department of Fertilizers.
Notably, the Indian government has approved the "National Mission on Edible Oils - Oilseeds" for a period of 7 years from 2024-25 to 2030-31, with a financial outlay of INR 10,103 crore (USD 1,202 million) to increase oilseeds production in the country. This initiative is expected to further drive the demand for sulfur fertilizers in the region.
