6 days ago
China has now disrupted specialty chemical market. Startups step up
Indian startups are taking a crack at another market facing Chinese squeeze: specialty fertilizers.
The bulk of such agrochemicals, designed to deliver targeted nutrients based on soil and crops, are imported, with China contributing 80% of the shipments, according to industry estimates. However, minister of state for chemicals and fertilisers Anupriya Patel informed the Lok Sabha on 25 July that China has reportedly withheld shipments to India over the past two to three months. Just like in the case of rare earth magnets used by the auto industry.
Now, Nagpur-based Ishita International and Mitrasena Pvt. Ltd, and Ahmedabad's Agricell Crop Science, among other startups, are producing mono-ammonium phosphate and mono-potassium phosphate water-soluble fertilizers, along with other categories, used to boost horticultural crop yields. Raw micronutrients required are still imported, but with little reliance on China.
'Amid rising demand, some of the startups have demonstrated strong potential for rapid growth and expansion in this segment,' said Rajib Chakraborty, national president, Soluble Fertilizer Industry Association (SFIA). 'Their innovation, agility, and production readiness position them well to lead the next wave of self-reliant, Make-in-India development in the specialty fertilizer space.'
The segment was last valued at about $1.02 billion in 2023 compared to India's overall fertilizer market worth $40.5 billion in 2023,Chakraborty said, citing market research reports. Industry stakeholders peg the specialty fertilizers' share at 3% to 5% of the total. These are not covered under the government's nutrient-based subsidy scheme.
While regular fertilizers deliver key macronutrients like potassium, phosphorus and nitrogen, specialty fertilizers are designed for the specific needs of a particular crop, soil type and environment. They include water-soluble nutrients, liquid foliar sprays, slow and controlled-release formulations, sulphur products and bio-stimulants.
Until recently, India lacked the technology to produce two of the most essential water-soluble fertilizer grades: mono ammonium phosphate (MAP) and calcium nitrate, Chakraborty said. But that has changed.
Ishita International has developed an Indian raw material-based technology capable of producing MAP, liquid calcium magnesium, calcium nitrate, calcium nitrate with boron, and several other water-soluble fertilizers in a single process,according to Yogesh Chavhan, business development manager, WSF at Ishita International.
The pilot plant is likely to be commissioned in the next 45 days, said Chavhan. 'We are technologically equipped with an integrated water-soluble fertilizer (WSF) production capacity."
Mitrasena started operations around 26 months ago. '...We are getting good traction from the farming community," said Manohar Malani, co-founder at Mitrasena, a startup producing non-toxic crop protection chemicals and water-soluble fertilizers.
Specialty fertilizers include polymer-coated urea, which is released slowly into the soil and is available to plants over a long period; chelated micronutrients that are effective in alkaline soil; water-soluble fertilizers such as monoammonium phosphate and potassium nitrate; and stabilized nitrogen fertilizers with urease inhibitors, which allow efficient nitrogen use in soil.
'We forayed into specialty liquid fertilizers in 2016, but demand started emerging only after 2019,' said Prakash G. Patel, proprietor of Agricell Crop Science. 'Buoyed by the response and encouraging demand, we have decided to ramp up the capacity from 900,000 litres to 5 million litres per annum."
According to Pushan Sharma, director at Crisil Intelligence, the demand for specialty fertilizers has been estimated to be around 1.2-1.3 million tonnes annually as in FY25. Among the major categories, micronutrients have the largest share of about 50-55% in total consumption of such chemicals, followed by water-soluble fertilizers (about 25-30%), sulphur (12-15%) and liquid fertilizers.
India imports the bulk of the micronutrients from Greece, Turkey, the US, Spain, Singapore and the Netherlands, and a small quantity of zinc sulphate monohydrate from China, according Patel's reply.
So the availability of raw materials is not a concern.
Still, the Indian Council of Agricultural Research and state agricultural universities are advancing indigenous solutions, including zinc ethylenediaminetetraacetic acid to prevent zinc deficiencies, boron blends, nanofertilizers, biofertilizers enriched with micronutrients, and zinc-solubilizing bacteria. "These research-based innovations are helping India move towards self-reliance in nutrient management, reduce import dependency, and ensure sustainable agricultural productivity," said Patel in Lok Sabha.
