India’s Trade Split: Fertilizer Deficit, Pesticide Surplus

India’s agrochemical trade split reflects two different supply structures: fertilizers recorded an USD 8.12 billion trade deficit in FY2025, while pesticides generated an USD 2.61 billion surplus. Fertilizer imports of USD 8.29 billion were more than 50 times exports of USD 0.16 billion, whereas pesticide exports reached USD 4.27 billion against USD 1.66 billion of imports.

Why does India’s agrochemical trade split between fertilizers and pesticides?

India’s agrochemical trade split arises because fertilizer use depends materially on imported products and inputs, while pesticide manufacturing supports export sales. Ministry of Commerce and Industry data show that fertilizer imports were USD 8.29 billion in FY2025, compared with USD 0.16 billion of exports, while pesticide exports of USD 4.27 billion exceeded imports of USD 1.66 billion.

The difference is tied to the domestic supply position of individual fertilizer products. India produces most of the urea it uses, but the supplied industry data states that about 20% of urea, 50% to 60% of di-ammonium phosphate, or DAP, and 100% of muriate of potash, or MOP, used in the country are imported. DAP is a phosphatic fertilizer and MOP is a potassic fertilizer, making import availability especially important for phosphorus and potassium supply.

Pesticide trade is measured under Harmonised System, or HS, code 3808. HS code 3808 includes insecticides, rodenticides, herbicides, anti-sprouting products, plant growth regulators and disinfectants sold in packings or as articles. The pesticide surplus therefore measures trade across a broad crop-protection classification rather than the balance for one chemical product.

How dependent is India on fertilizer imports?

India remains dependent on fertilizer imports despite the reduction in import value from the FY2023 peak. Fertilizer imports rose from USD 4.67 billion in FY2017 to USD 15.32 billion in FY2023, then moderated to USD 8.29 billion in FY2025; the source reports a 6.6% compound annual growth rate, or CAGR, over FY2017 to FY2025.

Physical imports also show the scale of the requirement. Total fertilizer imports were 177.0 lakh tonnes in FY2024, compared with 154.3 lakh tonnes in FY2018. Urea imports were 70.4 lakh tonnes in FY2024, DAP imports were 55.7 lakh tonnes, MOP imports were 28.7 lakh tonnes and nitrogen-phosphorus-potassium, or NPK, fertilizer imports were 22.2 lakh tonnes.

The nutrient mix changed between FY2015 and FY2024. Nitrogen's share of fertilizer nutrient imports fell from 52% to 47%, while phosphorus increased from 20% to 32% and potassium declined from 28% to 21%. By item, DAP's import share rose from 27% in 2017-18 to 31% in 2023-24, while NPK fertilizers increased from 3% to 13%; MOP's share declined from 31% to 16%.

India’s fertilizer sourcing was concentrated among a small group of countries in FY2025. Russia supplied 22% of fertilizer imports, China supplied 11%, Saudi Arabia supplied 10% and Oman supplied 9%, according to Ministry of Commerce and Industry data. Those four suppliers represented 52% of imports, linking fertilizer availability partly to overseas supply conditions.

Why do pesticides produce an export surplus for India?

India produces a pesticide trade surplus because export values have remained above import values throughout FY2017 to FY2025. Pesticide exports grew at a 7.98% CAGR over that period, compared with 5.22% for imports, and net trade increased from an USD 1.09 billion surplus in FY2017 to an USD 2.61 billion surplus in FY2025.

The surplus narrowed after FY2023 but remained positive in FY2025. Pesticide exports rose to USD 5.37 billion in FY2023, declined to USD 4.19 billion in FY2024 and recovered to USD 4.27 billion in FY2025. Imports were USD 1.80 billion in FY2023, USD 1.41 billion in FY2024 and USD 1.66 billion in FY2025, reducing the net surplus from USD 3.57 billion in FY2023.

The supplied data attributes pesticide export growth to India’s manufacturing capabilities and identifies Brazil, the United States and Japan as the leading export destinations. China was the principal pesticide import source in FY2025, followed by the United States and the Netherlands. This means India exports HS 3808 products while continuing to import products within the same broad classification.

Export volumes identify the categories contributing to the manufacturing base. Total pesticide exports increased from 451.66 thousand tonnes in FY2019 to 641.22 thousand tonnes in FY2023. Fungicide exports increased from 167 thousand tonnes to 275.48 thousand tonnes, with a reported 10.53% CAGR, while herbicide exports rose from 99.05 thousand tonnes to 144.45 thousand tonnes, with a 7.84% CAGR.

What could change India’s fertilizer deficit and pesticide surplus?

India’s fertilizer deficit will persist if domestic production remains below consumption for imported nutrients, particularly DAP and MOP. The supplied data says India imports all MOP used domestically and about half to three-fifths of DAP, while total fertilizer nutrient imports were 96.4 lakh tonnes in FY2024, compared with 101.6 lakh tonnes in FY2023.

Government subsidy mechanisms affect fertilizer availability and farmer pricing, although the source does not quantify their future trade effect. Under Direct Benefit Transfer, or DBT, fertilizer subsidy is transferred to companies based on sales to farmers. The Nutrient Based Subsidy, or NBS, scheme provides support for phosphatic and potassic fertilizers based on nutrient content, directly relating to categories with disclosed import dependence.

Pesticide export outcomes will depend on manufacturing capacity, export-market demand and the composition of imports. Pesticide import volumes rose from 1,066.16 thousand tonnes in FY2020 to 1,470.99 thousand tonnes in FY2024 even though the value balance stayed in surplus. Herbicide imports recorded a 14.87% CAGR over FY2020 to FY2024, while plant growth regulator imports recorded a 13.22% CAGR.

Domestic pesticide demand is also shifting across product categories in the supplied series. Indigenous bio-pesticide consumption recorded a 7.13% CAGR, while total indigenous chemical pesticide consumption recorded a negative 2.27% CAGR. Continued bio-pesticide adoption, registration requirements for new molecules and demand in export markets could change the mix underlying the aggregate pesticide trade surplus.

Conclusion

India’s trade figures show that fertilizers and pesticides cannot be treated as one uniform agrochemical market. Fertilizers carried an USD 8.12 billion deficit in FY2025 because imports remain necessary for part of urea use, much of DAP use and all MOP use, while pesticides produced an USD 2.61 billion surplus through higher export value than import value.

The disclosed indicators to watch are fertilizer sourcing and the recovery of pesticide exports. Russia’s 22% fertilizer-import share in FY2025 and DAP’s 31% import share in 2023-24 show where external dependence is concentrated, while pesticide exports of USD 4.27 billion in FY2025 remained below the USD 5.37 billion recorded in FY2023. DBT and NBS mechanisms, along with bio-pesticide adoption, are the stated policy and demand factors that may affect later trade patterns.