Use of fertilizer low in India
The Indian fertilizer market is projected to record a 12.3% CAGR during 2019-24 to Rs.11,116 billon from Rs.5,437 billion in 2018, according to a ResearchAndMarkets report.
Fertilizers have played a key role in the success of India’s green revolution and subsequent self-reliance in food-grain production, said th report “Indian Fertilizer Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2019-2024”.
“The increase in fertilizer consumption has contributed significantly to sustainable production of food grains in the country. As a result, the demand of fertilizers has witnessed double-digit growth rates over the past several years,” said the report.
Despite a strong growth in recent years, the average intensity of fertilizer use in India remains much lower than most of the developed and emerging countries around the world.
Catalyzed by a strong growth in the country’s population over the next five years, food demand is also expected to exhibit a strong growth, according to the report.
Conversely, as a result of increasing urbanisation levels, available arable land is expected to decrease. “We expect fertilizers to play a key role in increasing the average crop yields per hectare,” it said.
Despite strong historical growth, fertilizer consumption in India remains highly skewed. There are currently a number of states in India which still have a very low penetration of fertilizers. This leaves a lot of room for future growth.
“We expect a number of government and non-government awareness campaigns to educate farmers on the benefits of fertilizers.
“Promotion of fertilizers through television, radio and customized rural workshops are also anticipated to increase the consumption of fertilizers in the coming years,” said the report.
Increasing rural incomes, coupled by easy availability of credit, are also likely to create a positive impact on fertilizer usage in the country.
Contract farming, where inputs in terms of technology and training are expected to be provided to the farmer from the food processor (contractor), is also expected to create a positive impact on fertilizer usage. fiinews.com
