India Organic Fertilizer Market 2024–2033

Reports Description

The India Organic Fertilizer Market was valued at USD 577.10 Million in 2023 and is expected to reach USD 942.39 Million by 2032, at a CAGR of 5.6% during the forecast period 2023 – 2032.

Organic fertilizers are naturally available plant, animal and mineral sources that contain moderate amounts of plant essential nutrients. Organic fertilizers refer to those organic amendments applied to the soil such as include animal manure, sewage sludge, and compost, along with rendering waste, guano, brewery waste, digestate and other bio-wastes.

The government of India has announced schemes worth crores for encouraging organic farming and fertilizer industry, as India has the potential to become the hub of organic fertiliser production in the world.

India Organic Fertilizer Market: Growth Factors

Organic fertilizer provides nutrients for plants while creating healthy soil. They are considered a greener solution for sustainable agriculture. Most commonly used organic fertilizers include composted animal manure, compost, sewage sludge, food processing wastes, and municipal biosolids.

They improve soil health and release nutrients to soils gradually. Indian Organic Fertilizers industry is mainly driven by various factors such as growing demand for organic food among consumers, supportive government policies, increasing demand for sustainable agriculture, and various environmental benefits of organic fertilizers such as water and soil conservation.

Various factors such as increasing awareness about the health benefits associated with the consumption of organic products, and changes in the purchasing behaviour of consumers are propelling the demand for organic food, which in turn boosts the demand for organic fertilizers and thereby market growth.

The government of India is implementing various supportive policies and schemes to promote organic farming. For instance, schemes such as Paramparagat Krishi Vikas Yojana (PKVY) and Mission Organic Value Chain Development for North Eastern Region (MOVCDNER) are providing end-to-end support to farmers engaged in organic farming i.e. from production to processing, certification and marketing and post-harvest management. Such supportive policies are encouraging organic farming in India, which in turn boosts the demand for organic fertilizers.

Increasing environmental concerns due to conventional farming are also propelling the demand for organic fertilizers. Excessive usage of synthetic fertilizers increases soil degradation, water pollution, environmental degradation and greenhouse emissions.

However, organic fertilizers enhance soil fertility, decrease water pollution, reduce degradation of agricultural land, enhance soil nutrient cycling etc. Thus, due to above mentioned benefits the adoption and utilization of organic fertilizer are increasing in India, which in turn drives market growth.

India Organic Fertilizer Market: Restraints

Indian Organic Fertilizers Industry facing various challenges such as less adoption of organic fertilizers as compared to synthetic fertilizers, fluctuation in raw materials prices, growing counterfeiting of fertilizers, and higher cost of organic fertilizers as compared to synthetic fertilisers are restraining the market growth.

Organic fertilizers contain lower nutritional content (NPK) as compared to synthetic fertilizers. Soil requires a high content of NPK value organic fertilizers alone cannot meet this requirement, which in turn reduces the use of organic fertilizer, thereby restraining market growth.

India Organic Fertilizer Market: Opportunities

The growing trend towards sustainable and organic agriculture is expected to create lucrative opportunities for the market. Favourable growth of organic agricultural practices all over India coupled with state government initiatives to promote organic farming is creating lucrative opportunities for the market during the forecast period.

Food produced by using organic fertilizers are rich source of various nutrients such as vitamins, enzymes, minerals and other micro-nutrients compared to those from conventional farms. Thus, this is expected to create lucrative opportunities for the market during the forecast period.

Growing research and development in organic fertilizer is expected to create lucrative opportunities for the market during the forecast period. Indian Council of Agricultural Research (ICAR) under the Network project on ‘Soil Biodiversity-Bio-fertilizers’ has developed new technologies for rapid composting within farm renewable resources which is a potential source of organic fertilizers.

Under this project, ICAR has developed improved and efficient strains of bio-fertilizers specific to various crops and soil types. Through this project, ICAR provides training and guidance to farmers on the use of organic fertilizers. Thus, such initiatives are expected to create lucrative opportunities for the market during the forecast period.

Favourable government policies are also expected to create lucrative opportunities for the market during the forecast period. For instance, the Government of India is promoting Natural Farming on a larger scale in Mission Mode to cover a 7.5 lakh hectare area by developing 15,000 clusters along Ganaga Basin and other red flag areas.

In this cluster, 10,000 Bio-Input Resource Centers (BRC) will be set up for continuous supply of local livestock based natural farming inputs like Beejamrut, Jeevamrut, and Neemastra. Through this initiative, the government of India is aiming to transform 1 crore farmers into natural farming. This programme will reduce the consumption of chemical fertilizers and is expected to create lucrative opportunities for organic fertilizers during the forecast period.

India Organic Fertilizer Market: Segmentation Analysis

India Organic Fertilizer market is segmented by source, by form, by crop type, and by region. By Source type, India’s organic fertilizer market is segmented into plant, animal, mineral and others. Among all of these source types, the Animal source type held the highest market share in 2022 and is expected to keep its dominance during the forecast period.

Various Animal sources such as birds, fish, and other animals are utilized to prepare these fertilizers. Animal source based organic fertilizers are mixed with respect to specific crop varieties, soil types, and environmental considerations. Animal based organic fertilizers are further sub segmented into manure, blood meal, bone meal, feather meal, fish meals etc. Mineral source based organic fertilizer is expected to grow at substantial growth rates during the forecast period.

By form, India’s organic fertilizer market is segmented into dry and liquid. Among these segments, the Dry segment held the highest market share of 67.50% in 2022 and is expected to keep its dominance during the forecast period. Dry organic fertilizers are in solid form and contain a single material such as rock phosphate and a blend of other ingredients. Powder and granular organic fertilizers are examples of dry organic fertilizers. Growing usage of dry fertilizers in garden and lawn and cash crop applications is mainly boosting the market growth of this segment.

By crop type, India’s Organic fertilizer market is segmented into cash crops, horticultural crops, row crops and others. Among all of these segments, Cash crops held the highest market share in 2022 and are expected to keep their dominance during the forecast period. Cash crops include cereals, grains, fruits, vegetables, oil seeds pulses etc. Increasing demand for food due to the growing population in the country is mainly boosting the cultivation of cash crops in the country, which in turn drives the market growth of this segment.

Report Scope

India Organic Fertilizer Market: Regional Analysis

By region, India Organic Fertilizers market is segmented into North India, South India, East India, and West India. Among all these regions, North India held a significant market share of India’s Organic Fertilizer Market in 2022 and is expected to grow at a significant pace during the forecast period owing to the growing area of organic farming in this region. Northern states like Uttar Pradesh, Delhi, Punjab, Haryana, Uttrakhand, and J&K are playing crucial roles in the market growth of this region.

West India is expected to emerge as a potential region during the forecast period. States like Maharashtra, Gujrat, and Madhya Pradesh are playing a major role in driving the growth of this region. Increasing consumption of organic fertilizers in the cultivation of sugarcane, grapes, cereals and grains, oil seeds and ground nuts in Maharashtra and Gujrat is propelling the market growth in this region.

South India is expected to hold a significant market share in India’s Organic Fertilizer market. Increasing organic farming in states like Andhra Pradesh, Karnataka, Tamil Nadu, Telangana, and Kerala is mainly propelling the market growth of this region.

India Organic Fertilizer Market: Recent Developments

• In March 2023, Coromandel International Ltd announced an investment of ₹1,000 cr for a foray and expansion into CDMO space, speciality, industrial chemicals and organic fertilizers. Through this investment company is planning to expand its business and enhance the production capacities of various products.

• In Sep 2023, Gujrat State Fertilizers & Chemicals Ltd planned to expand agro-product portfolio. The company is establishing a new manufacturing facility of a 2×200 MTPD PROM plant at a polymer unit by using available existing infrastructure. Through this new manufacturing facility, Gujrat State Fertilizers & Chemicals Ltd is aiming to enhance its organic fertilizer manufacturing production capacity.

List of the prominent players in the India Organic Fertilizer Market:

• Amruth Organic Fertilizers
• Chaitanya Agrochemicals
• Coromandel International Ltd
• Deepak Fertilisers & Petrochemicals Corp. Ltd
• Eastern Organic Fertilizer Pvt. Limited
• GrowTech Agri Science Private Limited
• Gujarat Narmada Valley Fertilizers & Chemicals Ltd
• Gujarat State Fertilizers & Chemicals Ltd
• Krishna Agro Bio Products
• Madras Fertilizers Limited
• NM India Biotech
• Prabhat Agri Mangalore Chemicals and Fertilizers Limited
• Rallis India Ltd.
• Simbhaoli Sugars Inc.
• Southern Petrochemical Industries Corp. Ltd
• Swaroop Agrochemical Industries
• Others

These key players are adopting various growth strategies such as mergers & acquisitions, joint ventures, expansion, strategic alliances, new product launches, etc. to enhance their business operations and revenues.

The India Organic Fertilizer Market is segmented as follows:

By Source

• Plant
• Animal
• Mineral
• Others

By Form

• Dry
• Liquid

By Crop Type

• Cash Crops
• Horticultural Crops
• Row Crops
• Others

By Nutrient Contents

• Presence of organic substance up to 60%
• Presence of organic substance from 40% to 60%
• Presence of organic substance from 20% to 40%