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Sanjay Jain Jyoti Group share his expertise - Rejuvenising the phosphatic segment in fertilizer industry-

SARIKA THAKUR | April 19, 2022 04:39 PM

 The global phosphatic fertilizers market was valued at USD 62.24 billion in 2018 and is expected to grow to USD 83.28 billion by 2026, with a Compound Annual Growth Rate (CAGR) of 3.80 per cent throughout the forecast period. And, in India, DAP was the fastest-growing product in the non-urea market for the previous five years, from fiscal 2015 to fiscal 2020. During the same time period, it increased at a CAGR of 5.3 per cent, while complex fertilizer grew at a CAGR of 3.3 per cent. DAP and complex fertilizers are likely to continue to drive segment growth over the next five years, from fiscal 2021 to fiscal 2026, as India's production of crops such as fruits and vegetables, sugarcane, cotton, and other crops grows at a faster rate than in the past. The industry expert, Sanjay Jain Jyoti Group put insights on the factors that will help in the growth of phosphatic segment in fertilizer industry. 

Phosphatic fertilizers have grown significantly in popularity during the last five years, owing to increasing farmer awareness and partial liberalisation of the market. Businesses have been able to enter the market with novel items and compete in accordance with market conditions. As a result, private sector players have been able to establish a stronghold in this market. Factors such as distribution network, manufacturing facility location, access to transportation infrastructure such as ports, rail, and sourcing or raw material at lower prices become critical to the players' growth prospects when MRP is determined by market forces. 

Sanjay Jain Jyoti Group explains, “Increased population pressure, shorter fallow periods, deforestation, and poor farming techniques have all contributed to widespread soil deterioration in many developing countries. The insufficient replenishment of soil nutrients and organic matter is one of the most visible manifestations of this environmental harm. Phosphorus (P) deficiency, in particular, is becoming a serious problem in many soils. Furthermore, due to complementarities in plant nutrient uptake, this shortage compromises the sustainability of applying other nutrients. It is critical to repair soil fertility in order to maintain and improve present levels of production and farm revenue in order to ensure the long-term viability of agriculture and the livelihoods of substantial sectors of the rural population.” 

Notably, fertilizer use has been limited due to a number of constraints, particularly in Sub-Saharan Africa and low-income Asia. Farmers' limited financial means and risk-taking capacity, poor and expensive fertilizer distribution systems (and marketable crop surpluses), a lack of adequate knowledge of the potential of using local phosphate rock (PR), and the absence of non-industrial techniques to increase PR solubility are the most important of these factors, Sanjay Jain Jyoti Tradingalso adds. Farmers can not only gain considerable rates of return at the projected PR cost, but these fertilizers also deliver important environmental benefits, according to FAO research undertaken at a global level 

The fertilizer industry is currently extensively regulated, which helps to promote fertilizer consumption and food grain output, but it also has a number of negative consequences, particularly in terms of efficiency. Relinquishing controls would improve efficiency, attract new investments, both domestic and international, promote more balanced use of N, P, and K, and spur innovations in more efficient fertilizer products and thereby rejuvenate the Indian fertilizer sector resulting in vibrant and prosperous Indian agriculture.

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