The Specialty Fertiliser Market has strong growth potential and is expected to reach USD ~63 billion by 2035 globally, backed by sustainable agricultural practices.
There is a strong need for high-efficiency fertilisers. The implementation of specialty fertilisers is increasing across global market, including the United States, Canada, Brazil, Europe, India, China, and Japan. This is due to the rising awareness about the benefits associated with specialty fertilisers as they are more efficient as compared to standard fertilisers. The use of specialty fertilisers with drip irrigated and other fertigation equipment helps farmers achieve better cost yields effectively.
Driven by increasing adoption of precision and sustainable farming practices, India's specialty fertiliser market is projected to reach ~5-6 USD billion by 2030, with CAGR of ~18% from 2025-2030 - if Government’s aggressive subsidies and China+1 strategy are effectively deployed. However, Government’s subsidies do not always translate into higher industry value. For example, the Indian controlled-release fertiliser market saw a decline in market value despite increased consumption. The main reason was the Indian government mandating that all domestic urea producers manufacture 100% neem-coated urea and distribute it at subsidised prices to the farmers.
Domestic Players Herald India’s Self-Reliance in Specialty Fertilisers
China’s export halt is set to accelerate India’s self-reliance in specialty fertilisers. Domestic players such as IFFCO, Coromandel, Tata Chemicals, and GSFC are leading the charge, supported by government policies and R&D investments. The supply gap presents immense opportunities to domestic players across all segments of specialty fertiliser demand.
Controlled/Slow-Release Fertilisers: India imported ~200 KTPA of PCU and sulphur-coated urea (SCU).
How are domestic players filling the market gap? IFFCO’s Nano Urea – A liquid nitrogen alternative reducing urea demand, Deepak Fertiliser’s Nitroplus – Neemcoated slow-release urea; New start-ups developing lignin-coated urea for delayed nutrient release.
Chelated Micronutrients: India imported ~50 KTPA of Fe/Zn-chelates.
How are domestic players filling the market gap?
Coromandel International – expanded Gromor micronutrient production; GSFC & Aries Argo – ramping up EDTA/DTPA chelates. However, the local production of Fe-EDDHA is still a challenge due to high-tech requirements.
Water-Soluble Fertilisers (WSFs): Disruptions in supplies of MAP & KNO3 for fertigation.
How are domestic players filling the market gap?
Tata Chemicals is scaling up hydroponic-grade fertilisers; Chambal Fertilisers is increasing soluble NPK blends. New JVs with Israeli firms such as Haifa Group for advanced WSFs are on the horizon.
Organic & Bio-Based Fertilisers: while not halted, reduced the imports of humic acid & seaweed extracts.
How are domestic players filling the market gap?
Aquagro & Biostadt are expanding organic soil conditioners; Camson Bio is producing microbial bio-fertilisers.
On the technology front, IFFCO and KRIBHCO are leading innovations in nano-fertilisers, while Biostadt and Aquagro are scaling up for Bio-stimulants & precision agriculture solutions.
The Indian specialty fertiliser market is diversifying rapidly, with CRFs, WSFs, and nano-fertilisers driving growth. Government initiatives and China’s export curbs are accelerating domestic production albeit challenges such as Indian specialty fertilisers remain 10-12% costlier than Chinese ones.
The technology gaps in Fe-EDDHA & advanced CRFs require foreign collaboration, for which there are 100%
FDI initiative by the Government. Meanwhile, alternatives from Israel’s Haifa Group, Morocco’s OCP Group, Belgium’s Solufeed and Germany’s BASF, are being considered for products including - Polymer-coated urea, Fe-EDDHA/Zn-EDTA, Monoammonium phosphate (MAP) and NBPT-treated urea.
China’s export halt has acted as a catalyst for India’s self-reliance, powered by PM-PRANAM scheme and diversified trade partnerships. However, niche specialties such as high-purity Fe-EDDHA remain difficult to replace entirely.
(Balan is associate partner, chemical growth advisory at Frost & Sullivan; Awalla is consulting manager, chemicals growth advisory at Frost & Sullivan. They can be reached at nimisha.iyer@frost.com)