India Organic Fertilizers Market Outlook to 2028

India Organic Fertilizers Market Overview

The India Organic Fertilizers market reached a valuation of USD 402 million in 2023, driven by increasing awareness of sustainable farming practices, government support for organic farming, and the rising demand for organic food products.

The market is characterized by key players such as National Fertilizers Limited, Gujarat State Fertilizers & Chemicals Ltd., and Coromandel International. These companies are noted for their strong distribution networks, diverse product portfolios, and commitment to sustainability.

In 2023, Coromandel International announced the expansion of its organic fertilizer product line in India, focusing on enhancing soil health and reducing dependency on chemical fertilizers. This development is part of Coromandel International's strategy to strengthen its market presence in India by offering sustainable agricultural solutions.

The northern region of India dominates the organic fertilizers market. This dominance is attributed to the region's extensive agricultural activities, favorable government policies, and a growing number of organic farms.

India Organic Fertilizers Market Segmentation

The India Organic Fertilizers Market can be segmented by various factors like Product Type, Crop Type, and Region.

By Product Type: The India Organic Fertilizers market is segmented by Product Type into Plant-Based, Animal-Based, and Mineral-Based fertilizers. Plant-Based fertilizers lead due to their wide availability and cost-effectiveness. Growing awareness about the benefits of organic farming and environmental sustainability boosts this segment.

By Application: The India Organic Fertilizers market is segmented by application into Cereals & Grains, Fruits & Vegetables, and Oilseeds & Pulses. In 2023, Fruits & Vegetables lead the market due to the increasing consumer demand for organic produce and the health benefits associated with organic fruits and vegetables. The adoption of organic fertilizers in this segment is driven by farmers' focus on enhancing soil fertility and reducing chemical residues to meet export standards and cater to health-conscious consumers.

By Region: The India Organic Fertilizers market is segmented by region into North, West, South, and East. Northern India leads the market due to higher agricultural activity, more organic farming initiatives, and significant investments in sustainable agriculture practices, particularly in states like Punjab and Haryana.

India Organic Fertilizers Market Competitive Landscape

Company

Establishment Year

Headquarters

National Fertilizers Limited

1974

Noida, India

Gujarat State Fertilizers & Chemicals Ltd.

1962

Vadodara, India

Coromandel International

1961

Hyderabad, India

IFFCO (Indian Farmers Fertiliser Cooperative)

1967

New Delhi, India

Tata Chemicals

1939

Mumbai, India

National Fertilizers Limited: Expanding in India with New Product Launches. National Fertilizers Limited has gained significant market share in India due to its extensive product portfolio and robust distribution network. Their focus on sustainable farming practices continues to drive their growth, with the company recording sales of 1.5 million tons of organic fertilizers in India in 2023, according to the Indian Agricultural Statistics (IAS).

Gujarat State Fertilizers & Chemicals Ltd.: Strengthening Market Position Through R&D. Gujarat State Fertilizers & Chemicals Ltd. is known for its high-quality organic fertilizers used in various agricultural applications. The company's commitment to research and development has bolstered its market position, with increasing sales in India in 2023.

India Organic Fertilizers Industry Analysis

Market Growth Drivers

Government Subsidies and Incentives: Various state and central government schemes in India provide substantial financial support and subsidies to farmers who adopt organic farming practices. For instance, under the Paramparagat Krishi Vikas Yojana (PKVY), farmers receive financial assistance for purchasing organic inputs, including organic fertilizers. In 2023 alone, the government allocated INR 300 crore to support organic farming initiatives across various states. Such initiatives reduce the financial burden on farmers and encourage them to switch from chemical to organic fertilizers, which significantly contributes to the market's growth.

Expansion of Organic Farming Land: The area under organic farming in India has been steadily increasing, driven by government initiatives, non-governmental organizations' efforts, and private sector investments. The total area under organic certification in India reached over 2.5 million hectares in 2023, up from 1.8 million hectares in 2018. This expansion is largely due to increased awareness of the benefits of organic farming and better market access for organic produce. As more farmland is converted to organic farming, the need for organic fertilizers rises, thus boosting market demand and contributing to the overall market expansion.

Growth of the Organic Export Market: The global demand for organic products has been on the rise, leading to an increase in the export of organic produce from India. In 2023, India exported organic products worth over USD 1 billion, an increase from USD 600 million in 2018. To comply with stringent international organic standards, Indian farmers are increasingly adopting organic fertilizers, which enhance soil fertility and ensure chemical-free produce.

Market Challenges

High Cost of Organic Fertilizers: The high cost of organic fertilizers remains a significant challenge for market growth, particularly in the price-sensitive Indian market. The cost of producing and certifying organic fertilizers can be prohibitive, especially for small and marginal farmers.

Limited Awareness Among Farmers: The lack of awareness and understanding of the benefits of organic fertilizers can hinder their effective adoption. This challenge is particularly significant in regions with less access to agricultural education and training.

Government Initiatives

Organic Farming Promotion Programme (OFPP): The Organic Farming Promotion Programme (OFPP) is a government initiative aimed at encouraging farmers to adopt organic farming practices by providing training, workshops, and subsidies for organic inputs such as fertilizers and pesticides. This program also supports the development of organic farming clusters across various regions in India. According to the Indian Council of Agricultural Research (ICAR) 2023 report, the OFPP has covered 50,000 hectares of agricultural land and benefited over 60,000 farmers, contributing to the expansion of the organic fertilizers market in India.

Paramparagat Krishi Vikas Yojana (PKVY): The Government of India launched the Paramparagat Krishi Vikas Yojana (PKVY) to promote organic farming through a cluster-based approach, encouraging farmers to adopt organic practices, including the use of organic fertilizers. Under this scheme, financial assistance is provided for organic inputs, including organic fertilizers, to enhance soil health and productivity. According to the Ministry of Agriculture & Farmers Welfare's 2023 report, over 800,000 hectares have been brought under organic farming, significantly contributing to the organic fertilizers market in India.

India Organic Fertilizers Future Market Outlook

The India Organic Fertilizers Market is expected to grow by 2028, with a respectable CAGR during the period of 2023-2028, driven by increasing awareness of sustainable farming practices and the rising demand for organic food products.

Future Trends

Increased Adoption of Bio-Fertilizers: There is a growing trend towards the use of bio-fertilizers, which contain living microorganisms that help in enhancing soil fertility. As awareness about the benefits of bio-fertilizers increases, more farmers are expected to adopt these products to improve crop yields sustainably.

Integration of Advanced Farming Technologies: The adoption of precision agriculture and advanced farming technologies, such as soil testing and remote sensing, is expected to rise. These technologies can help optimize the use of organic fertilizers by accurately assessing soil nutrient needs, leading to more efficient and targeted fertilizer application.

India Organic Fertilizers Market Scope

By Product Type

Plant-Based Fertilizers

Animal-Based Fertilizers

Mineral-Based Fertilizers

By Application

Cereals & Grains

Fruits & Vegetables

Oilseeds & Pulses

By Region

Northern

Western

Southern

Eastern
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