India’s fertiliser industry is the backbone of its food security, driving productivity across millions of farms. As the country marches toward self-reliance in agricultural inputs, the fertilizer sector continues to evolve, balancing production, imports, and nutrient management.
The latest production estimates for FY 2024-25 signal resilience with transformation. Overall fertilizer production is expected to rise 2.7% to 51.9 million tonnes, compared to 50.5 million tonnes in 2023-24. But beneath this aggregate growth lies a powerful story of winners, laggards, and structural shifts in India’s fertilizer basket.
Fertiliser Production in India (Lakh tonnes)
Urea: A Controlled Decline
Urea, the most consumed fertiliser in India, remains the pillar of nutrient supply. However, production is set to dip by 2.4% to 30.6 million tonnes in 2024-25, after scaling 31.4 million tonnes in 2023-24. This decline is not a weakness but a strategic balancing act, as the government nudges farmers towards balanced nutrient use and reduces excessive dependence on nitrogen-heavy urea.
DAP: Sharp Contraction
Diammonium Phosphate (DAP) is facing a sharper correction. Production is expected to fall 12.2% to 3.77 million tonnes. This slump underscores the challenges of raw material dependency and volatile international phosphate rock and ammonia markets. The contraction in DAP is likely to shift attention towards alternative phosphorus sources.
SSP and NP/NPKs: The New Growth Engines
Where DAP falters, Single Super Phosphate (SSP) and complex NP/NPK fertilisers are stepping up.
• SSP production is forecast to rise 16.8% to 5.18 million tonnes, a sign of its growing role as a cost-effective and farmer-friendly option.
• NP/NPKs are expected to jump 18.6% to 11.3 million tonnes, cementing their place as the most dynamic segment of India’s fertiliser basket.
Together, SSP and NP/NPKs represent India’s pivot towards diversified and balanced nutrient management.
Nutrient Balance: A Subtle Shift
On a nutrient basis, total nitrogen (N) availability is expected to slightly decline (-0.7%), while phosphorus (P) shows a healthy 4.5% growth. This subtle rebalancing indicates progress in correcting India’s long-standing nutrient imbalance, moving away from a nitrogen-heavy regime.
The Big Picture: Strategic Resilience
India’s fertiliser sector is no longer just about quantity, it’s about quality, balance, and resilience. The growth in SSP and NPKs reflects a structural shift in farmer demand, while the moderation in urea and DAP highlights a more sustainable nutrient strategy.
With production nearing 52 million tonnes, India is consolidating its position as a fertiliser powerhouse, ensuring food security for over 1.4 billion people while gradually adapting to global market disruptions and climate-linked agricultural challenges.
India’s fertilizer sector is not just growing, it is evolving.
