Indian fertilizer Demand is set to grow by 2%-3% in FY25, thanks to a good monsoon, higher crop prices, and expanded farmland. Raw material costs have stabilised after the FY23 spike, and gas prices have eased. While India progresses toward self-sufficiency in Urea, it remains heavily reliant on imports for DAP, which faces reduced availability this year. Despite a 16% lower subsidy budget for FY25, recent adjustments ensure adequate support. The sector’s future hinges on balancing domestic production and import dependency, ensuring farmers have the tools they need for a bountiful harvest
India’s fertiliser demand is expected to grow by 2%-3% in FY25, driven by a strong monsoon, higher crop prices, and increased farmland under cultivation. Raw material costs have stabilised following the sharp spike in FY23, and natural gas prices have also eased.
While India is making steady progress toward self-sufficiency in Urea production, it remains heavily reliant on imports for DAP. This year, DAP availability has declined due to reduced production and imports.
Despite a 16% reduction in the subsidy budget for FY25, recent adjustments have ensured adequate support for the sector. The future focus will be on balancing domestic production and import dependency to equip farmers with the necessary resources for a successful harvest.
