Impact on Global Fertilizer Market
Ongoing conflicts, especially in Ukraine, have increased costs for petroleum-based fertilizers.
Conflicts in key regions affect the availability of raw materials for fertilizer production disrupting the Supply Chain
India's Fertilizer Import Scenario
India imports about 20% of its urea, 50-60% of DAP, and all of its Muriate of Potassium (MOP).
In 2021-22, India produced 435.95 lakh metric tonnes of fertilizers but faced a demand shortfall of 143.72 lakh metric tonnes.
Fertilizer consumption in India decreased slightly from 629.83 lakh metric tonnes in 2020-21 to 579.67 lakh metric tonnes in 2021-22.
The Indian government allocated ₹1.79 lakh crore for fertilizer subsidies in 2023-24, significantly supporting both domestic and imported fertilizers.
Long-term Concerns
Experts predict continued volatility in fertilizer prices due to geopolitical conflicts.
Shortages and rising costs threaten the upcoming winter crop sowing, particularly for wheat.
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