India organic fertilizers market is projected to witness a CAGR of 10.23% during the forecast period FY2025-FY2032, growing from USD 0.55 billion in FY2024 to USD 1.20 billion in FY2032. Factors such as improvement in soil health and production of higher yield are majorly driving market growth in India. Moreover, otis factors such as consumers’ ability to pay a premium price for organic produce due to their preference for healthy and superior quality food and streamlined organic certifications in the country are fostering growth of market.
Consumers preference of organic food in India is significantly contributing to the growth of the organic fertilizers market in the country. This has been fueled by increased consumers’ awareness of health benefits of organically produced food products and their preference for natural, fresh, and more nutritious food. To cater to the shift in consumers’ preference, farmers are adopting organic fertilizers which are crucial for maintaining the productivity of the soil and supplying them vital nutrients for higher yields. According to the Ministry of Commerce & Industries, Government of India, India produced about 2.9 million MT of certified organic products in FY2022-FY2023, including all oil seeds, fiber, sugarcane, cotton, cereals and millets, pulses, aromatic and medicinal plants, tea, coffee, fruits, dry fruits, spices, vegetables, etc.
Additionally, with the availability of large cultivable lands in India, organic farming is adopted in India on a larger scale, promoting the utilization of organic fertilizers. According to the survey of International Federation of Organic Agriculture Movements (IFOAM) in 2022, organic food in India is cultivated in 2.6 million hectares, which is the fifth largest in the world. Moreover, farmers’ ability to produce organic fertilizers on-site through composting and vermi-composting, reduces dependency on external inputs and helps in lowering costs which further promotes market growth.
Usage of Polyhalite Fertilizer in Southern India to Drive the Market Growth
As polyhalite fertilizers are naturally occurring minerals, they are gaining popularity in India organic fertilizers market due to its unique composition containing potassium, magnesium, sulfur, and calcium. These fertilizers cater to the farmers’ need for high yield as it supplies essential nutrients to the soil and the crop which are essential for the robust growth and development of plants.
In January 2024, the managing director of Indian Potash Limited explained how Polyhalite Fertilizers are revolutionizing the organic farming in India. According to the MD, these fertilizers present a comprehensive solution and nourishes the crop while preserving the environment.
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This fertilizer will create a positive impact on the agriculture of India as turmeric crop which demands high quantities of potassium is majorly produced in India. According to the report of Ministry of Food Processing Industries of India, the country dominates the global turmeric production, contributing to 80% of the market worldwide. Moreover, as per the estimates of the National Horticulture Board, Southern states of India such as Telangana, Maharashtra, Karnataka, Tamil Nadu, and Andra Pradesh are among the highest contributors, with a share of 28.09%, 22.34%, 11.14%, 8.13%, and 6.35%, respectively of total turmeric production in India in 2022. As a result, the increase in the demand for Polyhalite fertilizer to cater demand of turmeric around the globe will fuel the growth of the organic fertilizers market.
Government Initiatives to Act as a Catalyst for Market Growth
The Indian government, both at state and the central level, is actively promoting the use of organic fertilizers for improving sustainable agriculture practices and reduce dependency on chemical inputs. Some recently introduced schemes at the center include Paramparagat Krishi Vikas Yojana (PKVY), which has the objective of encouraging farmers to take organic farming. The scheme provides financial assistance for organic inputs, organic farming, and organic NPM.
Further, the Ministry of Agriculture and Farmers’ Welfare launched the National Project on Organic Farming for the Setting up of organic input production units and quality control laboratories, and incentives to producers to promote organic farming. The government, through the National Mission for Sustainable Agriculture, supports activities for the production and distribution of bio-fertilizers and organic manure.
In February 2024, the Government of India raised 16 times allocation for organic fertilizers with the focus on nano di-ammonia phosphate. The ministry has allocated USD 11.91 million (INR 100 crore) for the promotion of organic fertilizers during FY2025 against USD 0.71 million (INR 6 crore) in FY2024. Moreover, a new scheme was introduced by the government in 2023, named, GOBARdhan initiatives to promote the usage of organic fertilizers.
Animal-Based Organic Fertilizers to Dominate Market
Cow dung and cow urine are extensively used organic fertilizers in India. It is because these by-products are readily available in the country and are traditionally used in agriculture. Cow dung being rich in essential nutrients such as nitrogen, phosphorus, and potassium promotes plant growth, improves soil structure, enhances microbial activity, and increases water retention in soil.
Cow urine is a valuable resource, containing high amounts of nitrogen, potassium, and several micronutrients. It acts as a natural pesticide and growth promoter for crops. This contributes to the wide usage of cow manure and urine in India for sustainable farming. Furthermore, it is fueled by the re-cycling of the waste from the animals and reduction in dependence on chemical fertilizers.
Besides, the government and non-governmental organizations attract their usage among farmers due to their initiates and promotion through subsidies. For instance, in July 2022, Chhattisgarh government launched a new scheme under which the state government started to procure cow urine to make organic fertilizers. Prior to this, in 2020, the government launched its flagship program, Godhan Nyay Yojana, under which cow dung was procured for turning it into valuable by-products such as vermicompost and super compost.
Future Market Scenario (FY2025 – FY2032F)
Government bodies and private companies are expected to fuel market growth in the forecast period. As government provides subsidies and training for organic farming and the investments of the private companies in the production and distribution of organic fertilizers is rising, the market is anticipated to witness a robust growth in the forecast period.
The support from central and state government of India through the introduction of various schemes and subsidies is further augmenting the market growth. For instance, the Government of Sikkim has been framing policies through which it is meeting its objectives of becoming an entirely organic state. Promotion of organic farming by other states, such as Kerala and Andhra Pradesh, is supported by different subsidies made available under state government schemes and the rising awareness among farmers about organic products and market linkages.
Report Scope
“India Organic Fertilizers Market Assessment, Opportunities and Forecast, FY2018-FY2032F”, is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of India organic fertilizers market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecast between FY2024 and FY2032. Additionally, the report profiles the leading players in the industry, mentioning their respective market share, business models, competitive intelligence, etc.
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