Fertiliser Imports Post Decline, Yet Dependence on Essential Nutrients Persists

Fertiliser Import Dependence Eases in India, but Vulnerabilities Remain

Key Highlights

• Fertiliser consumption in India rose to 60.1 million tonnes in 2023-24 from 53 million tonnes in 2018-19.
• Domestic production increased to 50.3 million tonnes from 41.4 million tonnes in the same period.
• Import dependence on fertilisers has eased, with imports declining to 17.7 million tonnes from 18.8 million tonnes after a pandemic peak.

Fertiliser Import Composition

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• Urea imports account for 19.7% of consumption.
• Diammonium phosphate (DAP) imports meet more than 50% of demand.
• Muriate of potash is almost entirely imported due to limited domestic production.

Geopolitical Risks

• A significant share of fertiliser imports, especially DAP and urea, come from countries around the Strait of Hormuz region.
• 71.8% of urea imports and 60.3% of nitrogen and phosphorus imports originate from these countries.
• 40% of DAP imports also come from these countries.

Country-wise Imports

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• Russia is the top source of fertiliser imports, accounting for $1.6 billion.
• Saudi Arabia is the second-largest supplier, accounting for $1.4 billion.
• Other major suppliers include Morocco, Oman, and China.

Global Fertiliser Market

• Russia and Canada dominate fertiliser exports, accounting for a significant share of the $84.8 billion global market.
• The concentration of supply chains in a few regions poses geopolitical risks for fertiliser importers.