India, the world’s second largest fertilizer consuming country, had on this decade an annual fertilizer consumption growth of 4.8 percent. The availability of raw material for indigenous production is poor. Urea is the only fertilizer that can potentially be produced without any imported content. But the paucity of natural gas, the most preferred feed stock for its manufacture, is coming in the way of doing so, necessitating the setting up of joint ventures for urea production in gas-rich countries. In the case of the other fertilizers, the country has no source of potash, and only limited resources of phosphate rock. India’s phosphate processing facilities are located along the coast to facilitate the imports of raw materials needed to produce upgraded phosphate products. India’s levels of rock imports are highly impacted by the situation of the country’s DAP inventories.
India has a great potential for fertilizer consumption growth because its soils are under considerable strain, the result of natural nutrient deficiencies, intense farming practices and diverse crop requirements.