Project report for ORGANIC FERTILIZER

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Introduction

Organic fertilizers are formulated with natural plant residues and waste, animal manures & excreta, micro-organisms, and botanical extracts to enhance agricultural production. Organic fertilizers decompose very quickly without any negative effects on the surface and groundwater; thus, they are less hazardous to humans, animals, birds, and anything else that comes in contact with them. These fertilizers remain effective for a long time and improve the soil structure while increasing its water & nutrient holding capacity. They are slow releasing, non-toxic fertilizers and don’t leave any residues in the food; hence, they are preferred for producing residue-free agricultural yield. Increasing demand for organic food and rising awareness regarding environmental safety are the key factors driving the growth of the organic fertilizers market. Moreover, the abundant availability of organic waste and advances in organic fertilizer manufacturing processes further support the growth of this market. However, the high demand for inorganic (synthetic) fertilizers and challenges to new entrants and small companies hinder the growth of this market marginally. The COVID-19 pandemic has impacted the biological organic fertilizer market, resulting in the slow growth of the market during the forecast period. With the effective policies from the government and implementation of suitable practices can help companies to gain profits post the immediate effects of the pandemic. The increased practice of organic farming is one of the major factors behind the growth of the biological organic fertilizer market.

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Market potential & Strategy

Indian fertilizer market reached a value of INR 8870 Crores in 2020. Fertilizers are chemical substances containing nutrients in a known amount, which are applied directly or in an aqueous solution to the soil or plant. They maintain soil fertility and improve the development of crops, yield, as well as crop quality. Fertilizers play a pivotal part in the Indian agricultural scenario as they provide vital nutrients to the crops and increase agricultural production. Moreover, they are key contributors to the success of the green revolution, which aided in the subsequent self-reliance in food grain production. Nowadays, fertilizers are available in nitrogenous, phosphate, potash, and micronutrient variants and can be applied on a wide variety of grains, cereals, pulses, oilseed, fruits and vegetables, and commercial crops. Indian Fertiliser market is segmented into nitrogenous, phosphate, potash, complex, secondary nutrient, and micronutrient fertilizers on the basis of product. Based on their nature, fertilizers can be classified into chemical fertilizer and bio fertilizer. Increase in per capita income leads to high demand for organic food, which also drives the market for organic fertilizers in this region. Along with this, advancements in communication technology have enabled people to become aware of the growth and wellness dynamics, which has boosted this market globally, especially in developing country such as India. The major crops produced in these countries include fruits & vegetables, cereals, and grains. The key countries that play an important role in agriculture include India, China, and Australia. Cotton, sugarcane, fruits & vegetables, and cereals are the leading agricultural commodities exported from these countries.

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