About the Fertilisers Sector
Fertilisers are extremely important in agricultural production as they offer the essential nutrients for the growth and development of crops. The critical role of fertilisers for crops has created a demand for agricultural fertilisers all over the world.
India is known as the agricultural powerhouse in the world, and the production and usage of fertilisers is huge. Moreover, the Indian government has introduced several economic reforms to enhance the affordability of fertilisers and improve agricultural productivity, contributing to advancements in the country's food security.
Future Outlook of the Fertilisers Sector in India
As one of India's fundamental industries, fertiliser production has demonstrated continuous positive growth since 2014. Preliminary data for FY 2023 indicates a substantial increase of 9.6% in India's fertiliser production compared to the previous year. India stands as one of the leading global consumers of fertilisers, experiencing consistent growth in domestic sales. In 2023, the Indian fertiliser market reached a size of ₹942.1 billion. The market size is expected to increase with a CAGR of 6.39% between 2024 to 2030, at US$ 43.32 billion in 2024 and US$ 62.83 billion by 2030.
Things To Consider Before Investing in the Fertilisers Sector
- Raw material prices: First, understand the raw materials required in fertiliser production, such as natural gas, phosphates, and potash. Then, monitor the prices of these raw materials, as any change in the raw material prices can impact the price of the fertilisers.
- Demand and consumption trends: Conduct market research to understand current and future trends in agricultural demand, including crop rotation patterns. Through this, you will understand if the demand for fertilisers will stay intact in the future as well. You must also assess the potential impact of weather patterns and climate change on agricultural practices and fertiliser demand in the country.
- Government policies: Assess the impact of government policies on fertiliser subsidies, considering political stability for a predictable regulatory environment.
- Regulation changes: Stay informed about the regulatory environment governing the fertiliser sector. Consider companies' adherence to environmental regulations and their commitment to sustainable and responsible practices.
How To Invest in Fertiliser Sector Stocks?
Investing in fertiliser stocks via Angel One is easy. Simply follow these steps:
- Log in to your Angel One account.
- Click on the search icon and look for your desired fertiliser sector stock.
- Now, place your buy order. Simply click on the ‘Buy’ button, enter your desired quantity, and select the order type.
- To complete your transaction, click on the ‘Buy’ button.
If you don’t have a Demat account with Angel One, you can open one for free online within minutes.
