Consistent Compounders: These fertiliser stocks delivered a CAGR of over 26 per cent in the last three years!

Two major catalysts for the growth in demand for fertiliser are the rising population leading to strong growth in food demand and rapid urbanisation leading to the shrinking of arable land.

India is the second-largest consumer and the third-largest producer of fertilisers in the world. Presently, 25-30 per cent of the domestic demand is met through imports. The Indian fertiliser market reached a value of Rs 887 billion in 2020 and is estimated to record a CAGR of 11.9 per cent during the forecast period of 2021-2026. The rise in fertiliser consumption has contributed majorly to the country’s sustainable production of food grains. Urea is one of the highest consumed fertilisers in India which accounts for about 60-65 per cent of the overall fertiliser consumption.

Two major catalysts for the growth in demand for fertiliser are the rising population leading to strong growth in food demand and rapid urbanisation leading to the shrinking of arable land. India’s per hectare consumption of pesticide is the lowest in the world at 0.6 kg per hectare compared to top consumers Taiwan and China at 17 kg per hectare and 13 kg per hectare. Improvement in crop protection usage domestically in the future will provide fresh impetus to the fertiliser industry. India is also well-positioned to tap the huge multi-year export opportunity in agriculture chemicals as exports are slated to grow at 9 per cent CAGR.  

Have a look at the complete list of fertiliser stocks delivering returns with a CAGR of more than 26 per cent over the past three years.