India: Urea Market 2024

Urea Market Size in India

In 2022, the Indian urea market increased by 21% to $X, rising for the fifth year in a row after two years of decline. The market value increased at an average annual rate of +3.3% over the period from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. Over the period under review, the market reached the peak level in 2022 and is expected to retain growth in the near future.

Urea Production in India

In value terms, urea production reduced to $X in 2022 estimated in export price. In general, production saw a relatively flat trend pattern. The most prominent rate of growth was recorded in 2014 with an increase of 35% against the previous year. Over the period under review, production hit record highs at $X in 2021, and then declined in the following year.

Urea Exports

Exports from India

In 2022, the amount of urea exported from India skyrocketed to X tons, rising by 108% on the previous year. Overall, exports showed slight growth. The pace of growth appeared the most rapid in 2017 with an increase of 20,407% against the previous year. Over the period under review, the exports reached the maximum at X tons in 2018; however, from 2019 to 2022, the exports failed to regain momentum.

In value terms, urea exports soared to $X in 2022. In general, exports posted a prominent expansion. The most prominent rate of growth was recorded in 2017 when exports increased by 6,021% against the previous year. The exports peaked in 2022 and are likely to continue growth in the immediate term.

Exports by Country

Nepal (X tons) was the main destination for urea exports from India, accounting for a 94% share of total exports. Moreover, urea exports to Nepal exceeded the volume sent to the second major destination, Sri Lanka (X tons), more than tenfold.

From 2012 to 2022, the average annual rate of growth in terms of volume to Nepal stood at +11.7%. Exports to the other major destinations recorded the following average annual rates of exports growth: Sri Lanka (+186.3% per year) and Myanmar (-26.0% per year).

In value terms, Nepal ($X) remains the key foreign market for urea exports from India, comprising 88% of total exports. The second position in the ranking was held by Sri Lanka ($X), with a 7.4% share of total exports.

From 2012 to 2022, the average annual rate of growth in terms of value to Nepal totaled +24.6%. Exports to the other major destinations recorded the following average annual rates of exports growth: Sri Lanka (+200.4% per year) and Myanmar (-28.4% per year).

Export Prices by Country

The average urea export price stood at $X per ton in 2022, increasing by 70% against the previous year. Overall, the export price continues to indicate a resilient increase. The pace of growth was the most pronounced in 2014 an increase of 110%. The export price peaked at $X per ton in 2016; however, from 2017 to 2022, the export prices remained at a lower figure.

Prices varied noticeably by country of destination: amid the top suppliers, the country with the highest price was Sri Lanka ($X per ton), while the average price for exports to Myanmar ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was recorded for supplies to Senegal (+121.0%), while the prices for the other major destinations experienced more modest paces of growth.

Urea Imports

Imports into India

In 2022, the amount of urea imported into India skyrocketed to X tons, with an increase of 138% on the year before. In general, imports showed a prominent increase. As a result, imports reached the peak and are likely to continue growth in the immediate term.

In value terms, urea imports surged to $X in 2022. Over the period under review, imports saw a resilient increase. As a result, imports attained the peak and are likely to continue growth in the immediate term.

Imports by Country

In 2022, Oman (X tons) constituted the largest supplier of urea to India, accounting for a 29% share of total imports. Moreover, urea imports from Oman exceeded the figures recorded by the second-largest supplier, Russia (X tons), threefold. The third position in this ranking was taken by Saudi Arabia (X tons), with an 11% share.

From 2012 to 2022, the average annual rate of growth in terms of volume from Oman amounted to +12.5%. The remaining supplying countries recorded the following average annual rates of imports growth: Russia (+31.5% per year) and Saudi Arabia (+57.4% per year).

In value terms, Oman ($X), China ($X) and Qatar ($X) appeared to be the largest urea suppliers to India, with a combined 38% share of total imports. Russia, Saudi Arabia, the United Arab Emirates, Malaysia and Iran lagged somewhat behind, together accounting for a further 28%.

Among the main suppliers, the United Arab Emirates, with a CAGR of +126.9%, saw the highest rates of growth with regard to the value of imports, over the period under review, while purchases for the other leaders experienced more modest paces of growth.

Import Prices by Country

In 2022, the average urea import price amounted to $X per ton, growing by 13% against the previous year. Overall, import price indicated a slight increase from 2012 to 2022: its price increased at an average annual rate of +1.5% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, urea import price increased by +106.8% against 2017 indices. The most prominent rate of growth was recorded in 2021 an increase of 47% against the previous year. Over the period under review, average import prices attained the peak figure in 2022 and is likely to continue growth in years to come.

Prices varied noticeably by country of origin: amid the top importers, the country with the highest price was Qatar ($X per ton), while the price for Malaysia ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Iran (+10.8%), while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

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