India Urea Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2030

India Urea Market Analysis

The India Urea Market size is estimated at 13.43 billion USD in 2025, and is expected to reach 19.67 billion USD by 2030, growing at a CAGR of 7.93% during the forecast period (2025-2030).

The Indian urea fertilizer industry is undergoing a significant transformation driven by technological advancement and sustainable agriculture practices. The sector has witnessed a notable shift from conventional fertilizers to specialty and controlled-release variants, particularly in field crops, which accounted for 89.7% of conventional urea consumption in 2022. This transition is primarily attributed to the growing awareness among farmers about the benefits of enhanced nutrient use efficiency and environmental sustainability. The industry has also seen increased adoption of precision farming techniques, with manufacturers developing innovative coating technologies and smart nutrient delivery systems to optimize urea fertilizer utilization.

The market structure reflects the unique characteristics of India's agricultural landscape, where approximately 44% of farmers are small and marginal landholders with an average farm size of 0.38 hectares. This fragmented farming structure has led to the development of specialized distribution networks and targeted product formulations to meet the diverse needs of different farmer segments. Manufacturers are increasingly focusing on developing cost-effective solutions while maintaining product efficacy, particularly for small-scale farmers who require affordable yet efficient urea options. The industry has also witnessed significant consolidation efforts, with major players expanding their distribution networks and investing in research and development.

The emergence of sustainable farming practices has catalyzed innovation in urea fertilizer formulations. Manufacturers are increasingly incorporating environmental considerations into their product development strategies, with a particular focus on reducing nitrogen leaching and improving nutrient absorption rates. The horticulture sector, which represents 10.2% of the total urea fertilizer market, has been at the forefront of adopting these innovative solutions. This trend is particularly evident in the growing adoption of water-soluble and controlled-release fertilizers, which offer improved nutrient management capabilities while minimizing environmental impact.

The industry is witnessing a notable transformation in its retail and distribution landscape, driven by digital technology adoption and changing farmer preferences. Major manufacturers are investing in digital platforms and mobile applications to enhance farmer engagement and provide real-time advisory services. The floriculture segment exemplifies this evolution, with India exporting 15.6 thousand metric tons of floriculture products valued at USD 7.8 million in 2020-21, demonstrating the growing sophistication of specialized fertilizer applications. This digital transformation extends to supply chain management, with companies implementing advanced tracking systems and inventory management solutions to optimize distribution efficiency and ensure product availability across diverse geographical regions.

India Urea Market Trends

Manganese deficiency is a common problem in European countries, which most frequently affects sandy and organic soils with a pH above 6

• The area under field crop cultivation in the country increased by 3.5% during 2017-2022. The increased cultivation of cereals, pulses, and oilseeds in the country due to the rising consumer demand domestically and internationally is the major driving factor for the rising acreage.
• By crop type, rice, wheat, and soybean occupied the largest area under cultivation in the country, accounting for 47 million ha, 31.1 million ha, and 12.3 million ha in 2022. Rice is the most important food crop of India, covering about one-fourth of the total cropped area and providing food to about half of the Indian population. It is cultivated in almost all the states of the country, mainly in West Bengal, Uttar Pradesh, Andhra Pradesh, Punjab, and Tamil Nadu.
• Accordingly, rice consumption in the country increased from 95.8 million tons in 2016 to 107 million tons in 2022, which shows the rising demand for the crop in the country. This trend is further anticipated to drive the demand for fertilizers during 2023-2030. Similarly, wheat cultivation in the country increased from 98.5 million tons in 2017 to 107.6 million tons in 2020. It is cultivated majorly in Punjab, West Bengal, Haryana, and Rajasthan. Wheat is the second most important cereal crop in India and plays a vital role in the food and nutritional security of the country. Therefore, the intense cereal cultivation in the country, coupled with rising domestic and international demand, is anticipated to drive the Indian fertilizer market during 2023-2030.

Among the primary nutrients, nitrogen is the most-applied nutrient in field crops.

• In 2022, the average application rate for primary nutrients stood at 125.1 kg/ha. Notably, nitrogen topped the list with an average application rate of 223.5 kg/ha. Given its significance as a primary nutrient, nitrogen plays a pivotal role in supporting high-yield crops like rice, which is extensively cultivated in the country. However, nutrient deficiencies, particularly in nitrogen, are hampering rice productivity nationwide. The soil health in India, as highlighted in the State of Biofertilizers and Organic Fertilizers report, is a cause for concern. It reveals a rising reliance on chemical fertilizers, with 97.0%, 83.0%, and 71.0% of tested soils showing deficiencies in nitrogen, phosphorous, and potassium, respectively.
• Among the major crops, wheat, rice, and corn/maize led the pack in nutrient application rates in 2022, averaging 231, 156, and 149 kg/ha, respectively. Wheat and rice, being staple foods both domestically and globally, face challenges due to multiple nutrient deficiencies. Apart from nitrogen, phosphorous, and potassium, these crops also require micronutrients like sulfur, boron, iron, and zinc for optimal growth. Effective nutrient management is crucial for boosting crop production, thereby fueling market growth.
• Field crops, especially grains and cereals, have a voracious appetite for primary nutrients, particularly nitrogen fertilizers. Given the extensive cultivation of these crops in India, the soil's nutrient content is rapidly depleting. Consequently, farmers are increasingly relying on fertilizers to bridge the gap, a trend projected to drive the market from 2023 to 2030.

OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT

Segment Analysis: Speciality Type

Controlled Release Fertilizers (CRF) Segment in India Urea Market

Controlled Release Fertilizers (CRF) maintain their dominant position in India's specialty urea fertilizer market, commanding approximately 77% of the market share in 2024. This segment's leadership is primarily driven by the mandatory requirement from the Government of India for all domestic urea producers to exclusively manufacture Neem Coated urea. CRF's popularity stems from its ability to minimize nitrogen loss through volatilization, leaching, and denitrification, thereby enhancing nitrogen efficiency. These fertilizers have consistently outperformed conventional granular urea in reducing nitrogen loss, stimulating plant growth, and increasing nitrogen concentration. The segment's growth is further bolstered by increasing farmer awareness about the benefits of controlled-release technology and its role in sustainable agriculture practices. Additionally, the rising adoption of precision farming techniques and the need for environmentally sustainable fertilizer solutions have contributed to the segment's continued dominance in the market.

Water Soluble Segment in India Urea Market

The water-soluble urea fertilizer segment is experiencing significant momentum in the Indian market, driven by several key factors that position it for robust growth through 2024-2029. The segment's expansion is primarily fueled by the increasing adoption of precision agriculture and greenhouse cultivation practices, which require precise control over nutrient levels. Water-soluble fertilizers are gaining traction due to their ability to reduce overall water and fertilizer usage, minimize pollution and waterlogging, and decrease operational expenditures while producing higher quality crops. The segment's growth is further supported by government initiatives promoting sustainable agriculture practices and the adoption of advanced fertilizer technologies. The shift toward fertigation systems and drip irrigation, particularly in water-scarce regions, is also contributing to the segment's expansion, as these methods facilitate better water use efficiency and targeted nutrient delivery.

Remaining Segments in Specialty Type

The specialty urea fertilizer market in India is further diversified by the presence of liquid urea fertilizers and Slow Release Fertilizers (SRF) segments. Liquid urea fertilizers have gained significant traction due to their superior soil penetration capabilities and faster nutrient absorption properties, making them particularly valuable for both soil application and foliar spraying. The segment's growth is supported by the increasing adoption of micro-irrigation systems across the country. Meanwhile, the SRF segment has carved out its niche by providing steady nutrient release over extended periods, making it particularly valuable for long-duration crops. These segments complement each other in meeting diverse agricultural needs, from immediate nutrient requirements to sustained release applications, contributing to the overall development of India's specialty urea fertilizer market.

Segment Analysis: Crop Type

Field Crops Segment in India Urea Market

Field crops dominate the Indian urea fertilizer market, commanding approximately 88% of the total market value in 2024. This substantial market share is primarily driven by the extensive cultivation of major field crops like rice, wheat, and soybean in the country. Rice cultivation alone covers about 47 million hectares, making it the most important food crop in India, providing sustenance to about half of the Indian population. The segment's dominance is further strengthened by the widespread cultivation across key agricultural states including West Bengal, Uttar Pradesh, Andhra Pradesh, Punjab, and Tamil Nadu. The increasing domestic and international demand for cereals and pulses, coupled with government support for enhancing crop productivity, continues to drive the consumption of agricultural urea fertilizers in field crops.

Horticultural Crops Segment in India Urea Market

The horticultural crops segment is experiencing the most rapid growth in the Indian urea fertilizer market, with projections indicating robust expansion through 2024-2029. This growth is primarily attributed to India's position as the world's second-largest producer of fruits and vegetables, with the country leading in the production of bananas, mangoes, lemons, papayas, and okra. The segment's growth is further fueled by the increasing adoption of hi-tech farming practices, such as greenhouse cultivation and precision farming. The horticulture sector's contribution of about 33% to the agricultural gross value added (GVA) demonstrates its significant economic importance. The rising domestic and international demand for fruits and vegetables, coupled with expanding cultivation areas and the adoption of modern farming techniques, is driving increased utilization of urea fertilizers in this segment.

Remaining Segments in Crop Type

The turf and ornamental segment, while smaller in market share, plays a vital role in India's urea fertilizer market, particularly in the growing floriculture industry. This segment caters to the specialized needs of ornamental plant cultivation, golf courses, sports fields, and urban landscaping projects. The segment is characterized by its unique requirements for precise nutrient management and the increasing adoption of specialty urea fertilizers. The growing urbanization and rising demand for landscaping services in commercial and residential sectors are driving the development of this segment, while the expanding floriculture industry is creating new opportunities for urea fertilizer applications in ornamental plant cultivation.

Segment Analysis: Form

Conventional Segment in India Urea Market

The conventional urea fertilizer segment continues to dominate the Indian market, holding approximately 98% of the total market share in 2024. This overwhelming dominance is primarily attributed to the segment's cost-effectiveness and widespread availability through established distribution networks. The segment's strong position is further reinforced by government subsidies that make conventional urea fertilizers more accessible to India's large population of small and marginal farmers, who constitute about 44% of the farming community with an average farm holding size of 0.38 hectares. Field crops represent the largest consumer base for conventional urea fertilizers, particularly in rice cultivation which spans 47 million hectares across the country. The segment's robust performance is also supported by an extensive manufacturing infrastructure, with multiple production facilities across different regions ensuring a steady supply to meet the growing agricultural demands.

Specialty Segment in India Urea Market

The specialty urea fertilizer segment is experiencing rapid growth in the Indian market, projected to expand at approximately 8% through 2029. This accelerated growth is driven by increasing awareness among farmers about the benefits of specialty fertilizers, including enhanced nutrient use efficiency and reduced environmental impact. The segment encompasses various innovative products such as controlled-release fertilizers, polymer-coated urea, and water-soluble formulations, which are gaining traction particularly in precision farming applications. The adoption of these advanced fertilizers is being further catalyzed by government initiatives promoting sustainable agriculture practices and the growing trend toward precision farming techniques. Additionally, the segment's growth is supported by the rising demand for high-efficiency fertilizers in greenhouse cultivation and horticultural applications, where precise nutrient management is crucial for optimal crop yields.

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Along with the report, We also offer a comprehensive and exhaustive data pack with 25+ graphs on area under cultivation and average application rate per hectare. The data pack includes Globe, North America, Europe, Asia-Pacific, South America, and Africa.