Demand for Fertiliser in India: Determinants and Outlook for 2020

The paper begins with an overview of fertiliser consumption trends and then identifies important determinants of fertiliser demand and develops projects demand scenarios for fertilisers in India in 2020-21. India is the second largest consumer of fertilisers in the world after China, consuming about 26.5 million tonnes. However, average intensity of fertiliser use in India remains much lower than most countries in the world but is highly skewed, with wide inter-regional, inter-state, and inter-district variations. By 2020, fertiliser demand in the country is projected to increase to about 41.6 million tones and is expected to grow at a faster rate in eastern and southern region compared with north and west. To meet the increasing fertiliser requirements of the country, a conducive and stable policy environment, availability of raw materials, capital resources, and price incentives will play a critical role. [W.P. No. 2011-04-01]. URL:[http://www.iimahd.ernet.in/assets/snippets/workingpaperpdf/9641902932011-04-01.pdf].