Fertiliser firms bet big on specialty nutrients

Major fertiliser manufacturers, including Deepak Fertilisers, Coromandel International and SML, are gradually expanding capacity to produce non-subsidised, crop-specific soil nutrients that offer higher nutrient-use efficiency and better absorption.

Key points

• While the rest contaminates air and water resources, At present, barely 30-40% of conventional fertilisers such as urea is absorbed by the soil.
• Mehta remarked the business at present produces 0.4 million tonne (MT) of specialty fertilisers annually.
• Farmers have increasingly adopted these "specialty fertilisers" over the past few years for crops such as fruits and vegetables, cotton, sugarcane, soybean and wheat.
• A significant share of raw materials and finished fertilisers is imported.

Farmers have increasingly adopted these "specialty fertilisers" over the past few years for crops such as fruits and vegetables, cotton, sugarcane, soybean and wheat. Their nutrient-use efficiency can exceed 80%, compared with much lower efficiency for heavily subsidised conventional fertilisers such as urea.

Over the past four to five years, Deepak Fertilisers has introduced a number of crop-specific nutrient baskets for cotton, sugarcane, fruits and vegetables, including NPK-plus products, micronutrients, soil conditioners and water-soluble fertilisers applied through drip irrigation.

While the rest contaminates air and water resources, "At present, barely 30-40% of conventional fertilisers such as urea is absorbed by the soil. In the case of specialty fertilisers, nutrient-use efficiency can go as high as 80-85%, " Sailesh Mehta, chairman and managing director of Deepak Fertilisers, informed FE.

Mehta remarked the business at present produces 0.4 million tonne (MT) of specialty fertilisers annually. Although these products are more expensive than heavily subsidised fertilisers such as urea and DAP, demand has been growing rapidly, albeit from a small base. Over the past four to five years, the firm has conducted 95, 000-100, 000 demonstration plots to rise farmer acceptance of these products.

In FY26, more than 70 MT of heavily subsidised fertilisers-including urea, diammonium phosphate (DAP), potash and NPK variants-were consumed, resulting in a subsidy outgo of Rs 2.17 lakh crore. A significant share of raw materials and finished fertilisers is imported. Excessive employ of urea, which at present attracts a subsidy of more than 90%, has contributed to soil degradation and affected crop yields.

In short, fertiliser firms bet big on specialty nutrients is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.