Volume : 3, Issue : 1, January - 2014

Fertilizer Market in India � An Insight on Demand Determinants

S. Venkatesan, Dr. A. Arulraj

Abstract :

Agriculture is one of the most important sector in the Indian economy. Indian farmers don’t get a sufficient supply of chemical fertilizer for agriculture. The main objective of the fertilizer industry is to ensure the supply of primary and secondary nutrients in the required quantities. Fertiliser consumption trends expressed in terms of aggregate quantities consumed and intensity of use (i.e., kg per hectare of total cropped area) reflect both demand and supply decisions. Therefore, it is essential to understand fertiliser situation in the country. The entire requirement of potassic fertilisers is met through imports as India does not have commercially viable sources of potash. Rising share of imports is a matter of concern as world fertiliser markets are highly volatile and imperfect. This study uses causal model because time series data on fertilizer consumption as well as variables influencing fertiliser use are available. The results clearly indicate that increase in area under irrigation, and cropping intensity will accelerate fertiliser consumption in the country.