India Organic Fertilizer Market By Origin (Animal, Plant, Mineral), By Form (Dry and Liquid), By Crop Type (Cereals & Grains, Oilseed & Pulses, Fruits & Vegetables, Others), By Source (Domestic and Import), By Region, Competition, Forecast & Opportunities, 2020-2030F

Market Overview

India Organic Fertilizer Market was valued at USD 432.21 Million in 2024 and is expected to reach USD 670.85 Million by 2030 with a CAGR of 7.56% during the forecast period. The India Organic Fertilizer Market is driven by increasing awareness of sustainable farming, government initiatives promoting organic agriculture, and rising demand for chemical-free food. Consumers are shifting towards organic products due to health concerns, pushing farmers to adopt organic fertilizers. Additionally, soil degradation from excessive chemical fertilizer use has encouraged the transition to organic alternatives, which improve soil health and productivity. The Paramparagat Krishi Vikas Yojana (PKVY) and other subsidy programs support farmers in adopting organic practices. Growth in organic farming exports and the expansion of e-commerce for organic produce further fuel market demand. Technological advancements in biofertilizers and vermicomposting also play a role in market expansion, making organic fertilizers a key component of sustainable agriculture in India.

Key Market Drivers

Growing Awareness of Sustainable Farming Practices

The increasing awareness about the adverse effects of chemical fertilizers on soil health and the environment has significantly contributed to the rise of organic fertilizers in India. Farmers and agricultural experts have realized that excessive use of synthetic fertilizers leads to soil degradation, reduced fertility, and long-term yield losses. Organic fertilizers, derived from plant and animal waste, help maintain soil structure, improve microbial activity, and enhance water retention capacity. Awareness campaigns by government agencies, NGOs, and agricultural institutions have further educated farmers on the benefits of organic fertilizers, creating a shift towards sustainable and eco-friendly farming methods. In October 2021, Khetiwalo introduced ‘a diverse range of organic fertilizers priced competitively with chemical alternatives. Among them, Dharti Shakti 50kg serves as a complete replacement for Di-Ammonium Phosphate (DAP) fertilizer. Developed by Khetiwalo Organics and Agro Technologies, these natural, eco-friendly fertilizers aim to support farmers while promoting sustainable agriculture. Dharti Shakti is specifically formulated to enhance soil health, enriched with natural nitrogen and phosphorus, ensuring long-term pH balance and improved fertility.

In addition, workshops, training programs, and farmer-to-farmer knowledge-sharing initiatives have helped in disseminating information on organic farming techniques. Farmers who have successfully transitioned to organic agriculture often serve as role models for others, reinforcing the advantages of using organic fertilizers. Digital platforms and social media campaigns have also played a crucial role in raising awareness, with influencers and agricultural experts advocating for the long-term benefits of sustainable practices. With growing environmental concerns, organic fertilizers have become a key component of regenerative agriculture, ensuring that future generations have access to productive and healthy farmland.

Government Initiatives and Subsidies for Organic Farming

The Indian government has been actively promoting organic farming through various schemes and subsidy programs. The Paramparagat Krishi Vikas Yojana (PKVY) and National Programme for Organic Production (NPOP) are key initiatives that support farmers in adopting organic farming practices. These programs provide financial assistance for organic certification, training, and marketing. Additionally, state governments have introduced policies to encourage organic fertilizer production and distribution, ensuring availability and affordability for small-scale farmers. Such initiatives have accelerated the adoption of organic fertilizers, making them a viable alternative to chemical inputs. In October 2024, the ICAR-Central Coastal Agricultural Research Institute (CCARI) in Old Goa introduced a unit that utilizes anaerobic digestion to transform cattle dung and urine into clean biogas and organic fertilizer. This innovative system, known as the Livestock Waste Valorisation System (LWVS), promotes sustainable waste management and resource utilization.

Beyond direct subsidies, the government has facilitated access to credit for organic farmers through institutions like NABARD and cooperative banks. These financial aids allow small and marginal farmers to transition towards organic agriculture without facing economic hardship. Furthermore, dedicated organic farming clusters are being established across various states, enabling farmers to benefit from shared resources, collective marketing strategies, and streamlined supply chains. Government support for research in organic fertilizers and soil health management is also contributing to the sector’s growth. As policies continue to favor sustainable agriculture, the market for organic fertilizers will witness steady expansion.

Rising Demand for Organic Food Products

The growing consumer preference for organic food due to health and environmental concerns has been a major driver of the organic fertilizer market in India. With increasing disposable income, urbanization, and changing lifestyles, consumers are willing to pay a premium for organic fruits, vegetables, and grains. Retail chains, e-commerce platforms, and organic food brands have expanded their presence, creating a robust market for organically grown produce. This surge in demand has encouraged farmers to shift towards organic farming, consequently boosting the demand for organic fertilizers. In April 2023, the world’s first Nano DAP Liquid Fertilizer by IFFCO was launched by Hon’ble Minister of Home Affairs & Cooperation, Shri Amit Shah, at IFFCO Sadan, New Delhi. This initiative aims to empower farmers with advanced solutions to enhance productivity and increase their income. It marks a significant step toward realizing the Prime Minister’s vision of Sahkar Se Samriddhi and Atmanirbhar Bharat. The Hon’ble Minister dedicated the Nano DAP Liquid Fertilizer to the nation in a grand ceremony at IFFCO, New Delhi, which was virtually attended by millions of farmers, member cooperative societies across India, and viewers from abroad.

Health-conscious consumers are becoming more informed about the potential health risks associated with pesticide residues and chemical additives in conventionally grown produce. This awareness is driving the demand for organically grown food, which is perceived as safer and more nutritious. In addition, food certifications such as India Organic and Jaivik Bharat provide credibility to organic products, reassuring consumers about their authenticity. The hospitality sector, including hotels, restaurants, and catering services, has also shown a growing interest in sourcing organic ingredients, further fueling the demand. As a result, organic farming is not only gaining traction in urban markets but also in semi-urban and rural areas where consumers are beginning to appreciate the benefits of organic produce.

Soil Degradation and Need for Long-Term Soil Health Improvement

Intensive agricultural practices and the overuse of chemical fertilizers have led to soil degradation, nutrient depletion, and reduced productivity. Organic fertilizers restore soil health by enriching it with essential nutrients, improving its organic matter content, and enhancing microbial diversity. Farmers are increasingly adopting organic inputs to maintain soil fertility, increase crop resilience, and ensure sustainable agricultural productivity. As awareness of soil health management grows, the use of organic fertilizers is expected to rise steadily across the country.

One of the most pressing concerns in Indian agriculture is declining soil fertility due to continuous monocropping and excessive reliance on synthetic fertilizers. The depletion of essential micronutrients such as zinc, iron, and manganese has led to lower crop yields and an increased need for soil amendments. Organic fertilizers, including compost, manure, and biofertilizers, provide a holistic solution by gradually replenishing soil nutrients and enhancing microbial activity. Studies have shown that organic farming techniques improve soil structure, increase water retention, and reduce the risk of soil erosion. Long-term benefits of organic fertilizers include improved carbon sequestration, reduced soil salinity, and enhanced drought resilience, making them a crucial component of sustainable agriculture.

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Key Market Challenges

High Cost of Organic Fertilizers

Organic fertilizers are generally more expensive than conventional chemical fertilizers, making it difficult for small and marginal farmers to afford them. The higher cost of production, processing, and certification adds to the overall expense, limiting the adoption of organic fertilizers on a large scale. Unlike synthetic fertilizers, which are mass-produced and subsidized by the government, organic fertilizers require more labor-intensive processes such as composting, vermiculture, and microbial inoculation. The cost of raw materials, including animal manure, plant residues, and bio-waste, is also relatively high due to limited large-scale commercial production. Additionally, the lack of economies of scale in the organic fertilizer industry further contributes to the high costs, as most production units operate on a smaller scale compared to chemical fertilizer manufacturers.

Another factor contributing to the high cost is the investment required for organic certification, which is necessary to comply with regulatory standards and gain consumer trust. Farmers must follow strict guidelines, conduct periodic testing, and undergo audits to maintain their organic status, all of which incur significant expenses. This financial burden discourages many small-scale farmers from transitioning to organic farming. Although government subsidies and financial aid programs exist to support organic farming, they are often insufficient or inaccessible to all farmers. Without additional financial incentives or subsidies, the high cost of organic fertilizers remains a major challenge in the industry.

Limited Availability and Distribution Channels

The supply chain for organic fertilizers is still underdeveloped in many regions, particularly in rural areas. Farmers often struggle to access reliable sources of organic fertilizers, leading to inconsistent availability and increased transportation costs. Unlike chemical fertilizers, which have a well-established distribution network, organic fertilizers are produced by small-scale enterprises, cooperatives, and individual farmers, making their availability sporadic. Many organic fertilizer manufacturers operate in isolated pockets, limiting their reach to a wider farming community.

Additionally, due to the perishable nature of certain organic fertilizers, such as biofertilizers and compost, their storage and transportation require specialized conditions to maintain their effectiveness. Many distributors are reluctant to invest in organic fertilizer storage and transportation infrastructure, leading to supply chain inefficiencies. Furthermore, the lack of awareness among retailers and input suppliers about organic fertilizers results in limited stock and fewer marketing efforts, further restricting farmers' access to these products.

In remote agricultural areas, farmers often rely on local sources such as traditional composting and manure, which may not provide the necessary nutrients in balanced proportions. This reliance on informal organic fertilizer sources prevents the widespread adoption of scientifically formulated organic fertilizers. Without a well-developed supply chain, scaling up organic fertilizer use in India remains a significant challenge.

Key Market Trends

Expansion of Organic Farming and Exports

India has emerged as a major player in the global organic farming sector, with an increasing number of farmers and agribusinesses engaging in organic cultivation. The demand for Indian organic products in international markets, especially in Europe and the United States, has led to increased adoption of organic farming methods. The government’s support for organic exports, along with certification assistance and quality control measures, has boosted the production and use of organic fertilizers. As more farmers participate in organic supply chains, the domestic organic fertilizer market is expected to grow rapidly. In July 2023, the Indian Council of Agricultural Research (ICAR) has developed technologies for the rapid composting of on-farm renewable resources, offering a valuable source of organic fertilizers. Additionally, enriched compost varieties such as phosphor-nitro and phosphor-sulpho compost have been formulated for agricultural use as organic fertilizers. Under the All India Network Project on Soil Biodiversity and Bio-fertilizers, ICAR has also developed specialized bio-fertilizers tailored for different crops, further promoting sustainable farming practices.

The Agricultural and Processed Food Products Export Development Authority (APEDA) has played a key role in promoting Indian organic products in global markets. Export demand for organic spices, tea, rice, pulses, and medicinal plants has encouraged farmers to transition to organic farming. To meet international quality standards, farmers are investing in organic fertilizers that improve soil health and enhance crop quality. Additionally, export incentives and streamlined certification processes are reducing barriers for Indian organic farmers. As global demand for organic products rises, India’s organic fertilizer industry will continue to expand to support this growing market.

Technological Advancements in Biofertilizers and Organic Inputs

The development of advanced biofertilizers, microbial consortia, and vermicomposting techniques has revolutionized the organic fertilizer industry. Research institutions and agri-tech companies are investing in innovative organic formulations that enhance nutrient availability, improve crop yield, and provide natural pest resistance. These advancements have made organic fertilizers more efficient, cost-effective, and widely accessible to farmers. With ongoing innovations in organic input technologies, the adoption of organic fertilizers is likely to accelerate in the coming years.

New-age biofertilizers, enriched with beneficial microorganisms such as Rhizobium, Azotobacter, and Mycorrhiza, are proving to be game-changers in improving soil fertility. Liquid biofertilizers and slow-release organic nutrient formulations ensure better nutrient absorption by crops. Modern composting techniques, including rapid aerobic composting and bio-digesters, have enabled large-scale production of high-quality organic fertilizers. Digital technologies are also helping in precision organic farming by offering customized organic fertilizer recommendations based on soil testing and crop requirements.

Segmental Insights

Form Insights

Based on Form, dry organic fertilizers have established a clear dominance over liquid organic fertilizers. The preference for dry fertilizers is primarily driven by their slow-release nature, cost-effectiveness, and ability to enhance soil health. These fertilizers, available in granular or powdered forms, are derived from natural sources such as plant residues, animal manure, and minerals. Unlike liquid fertilizers, which provide an immediate but short-lived nutrient boost, dry organic fertilizers decompose gradually, ensuring a sustained supply of nutrients to plants over an extended period. This slow-release mechanism not only improves crop growth but also reduces nutrient wastage, making it a more efficient option for farmers. Additionally, dry fertilizers contribute significantly to soil health by increasing organic matter content, improving soil aeration, and enhancing water retention. These factors create an ideal environment for plant roots to develop and for beneficial microorganisms to thrive, ultimately leading to better crop yields.

Another key factor behind the dominance of dry organic fertilizers is their affordability. The production and storage of dry fertilizers are relatively simpler compared to liquid fertilizers, making them more cost-effective for farmers. Their longer shelf life further reduces the risk of spoilage, allowing farmers to store them for extended periods without significant degradation in quality. Furthermore, dry fertilizers do not require specialized transportation or storage conditions, which makes them more accessible to small-scale and marginal farmers across India. The ease of application is another advantage, as dry fertilizers can be manually broadcasted or incorporated into the soil using traditional farming methods without the need for advanced equipment. This makes them a convenient option, especially in rural agricultural landscapes where modern fertigation systems are not widely available.

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Regional Insights

In the Indian organic fertilizer market, North India has emerged as the dominant region, significantly outpacing other areas such as South, West, and East India. This prominence is attributed to several factors, including extensive agricultural activities, favorable government policies, and a growing shift towards sustainable farming practices. North India, encompassing states like Punjab, Haryana, Uttar Pradesh, and Rajasthan, has historically been the agricultural backbone of the country. The region's fertile plains and conducive climate conditions have facilitated the cultivation of a wide variety of crops, ranging from cereals and pulses to fruits and vegetables. This extensive agricultural landscape naturally drives a higher demand for fertilizers to maintain and enhance soil fertility. As awareness about the long-term benefits of organic farming grows, there has been a marked increase in the adoption of organic fertilizers in this region.

Government initiatives have played a pivotal role in bolstering the organic fertilizer market in North India. Policies aimed at promoting sustainable agriculture, coupled with subsidies and financial incentives for organic farming, have encouraged farmers to transition from conventional chemical fertilizers to organic alternatives. Training programs and workshops organized by agricultural departments and non-governmental organizations have further educated farmers on the benefits of organic fertilizers, leading to increased adoption rates. The presence of key manufacturers focusing on crop-specific organic fertilizers has also contributed to the market's growth in North India. These companies have tailored their products to meet the specific nutrient requirements of the region's predominant crops, ensuring optimal yields and soil health. The availability of such specialized products has made it easier for farmers to make the switch to organic fertilizers, knowing that their crop needs are adequately addressed.

Recent Developments

• In December 2024, Indian fertilizer giant IFFCO has developed nano NPK, a new granular product currently awaiting government approval. Production will take place at IFFCO's Kandla plant, with a 5 kg bag priced at Rs 950. This innovation is designed to reduce dependence on urea and DAP. Previously, IFFCO introduced nano liquid urea and nano liquid DAP, reinforcing its commitment to advancing nano fertilizer technology through significant investments.
• The Government of India has introduced the Namo Drone Didi Scheme to empower women Self Help Groups (SHGs) by providing access to modern agricultural technology. As part of this initiative, the Department of Fertilizers, in collaboration with fertilizer companies, has facilitated the distribution of 1,094 drones to SHG members under the scheme. Fertilizer marketing companies are actively involved in developing marketing strategies for Drone Didis. Additionally, during the Viksit Bharat Sankalp Yatra (VBSY), launched on November 15, 2023, around 1.79 lakh demonstrations of drone applications were conducted, showcasing their use in spraying nano and water-soluble fertilizers across various crops.
• In September 2024, India’s second-largest fertilizer cooperative, KRIBHCO, has announced a partnership with Novonesis, a leading company in biological solutions. Under this agreement, KRIBHCO will market Rhizosuper, a product developed by the Denmark-based company. Following the signing of a Memorandum of Understanding (MoU) with Novonesis’ Executive Vice President of Planetary Health Biosolutions, Tina Sejersgard Fano, at an event in Delhi, KRIBHCO’s Managing Director, M.R. Sharma, emphasized that this collaboration marks a significant step toward providing Indian farmers with advanced agri-biosolutions. He highlighted KRIBHCO’s commitment to equipping farmers with innovative solutions that not only enhance crop yields and soil health but also promote sustainable agricultural practices.
• In October 2024, the Department of Environment, Uttar Pradesh, launched a program to encourage small and marginal farmers to adopt modern biogas technology. Under the National Bioenergy Program, the Ministry of New and Renewable Energy (MNRE), Government of India, has designated the Directorate of Environment, Uttar Pradesh, as the Program Implementing Agency (PIA). For the financial year 2024-25, the state has been assigned a target to set up 2,250 small biogas plants.

Key Market Players

• Indian Farmers Fertiliser Cooperative Limited
• Krishak Bharati Cooperative Limited
• IPL Biologicals Limited
• Southern Petrochemical Industries Corporation Limited
• T. Stanes and Company Limited
• Greenstar Fertilizers Limited
• Teesta Agro Industries Ltd
• K + S Fertilizers (India) Pvt. Ltd.
• DMCC Speciality Chemicals Limited
• Dayal Fertilizers Private Limited

Report Scope:

In this report, the India Organic Fertilizer Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

          ·       India Organic Fertilizer Market, By Origin:

o   Animal

o   Plant

o   Mineral

         ·       India Organic Fertilizer Market, By Form:

o   Dry

o   Liquids

          ·       India Organic Fertilizer Market, By Crop Type:

o   Cereals & Grains

o   Oilseed & Pulses

o   Fruits & Vegetables

o   Others

          ·       India Organic Fertilizer Market, By Source:

o   Domestic

o   Import

          ·       India Organic Fertilizer Market, By Region:

o   North

o   South

o   West

o   East

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the India Organic Fertilizer Market.

Available Customizations:

India Organic Fertilizer Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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