No immediate fertiliser shortage risk for next crop cycle: Coromandel’s Arun Alagappan

Fertiliser availability for the upcoming sowing season in the first quarter is unlikely to face immediate disruption, even as global uncertainties persist, said Arun Alagappan, Executive Chairman, Coromandel International. Speaking at the Business Today MindRush & India’s Best CEOs Awards event, Alagappan indicated that the industry is adequately covered in the near term, with sufficient raw material linkages and finished inventory in place for the first quarter.

This comes at a time when concerns around supply shocks and geopolitical disruptions have weighed on market sentiment.

According to him, India’s fertiliser ecosystem has built buffers over recent months, aided by significant imports, particularly of urea, towards the end of the last calendar year. As a result, the next sowing cycle is expected to proceed without major constraints, with availability unlikely to emerge as a bottleneck.

“Urea was kind of imported in a big way in the last quarter of last calendar year. So India holds a lot of urea…I don’t think the next season should be a problem in my view because…going by what we have at the moment and what we see, the next crop shouldn’t be a problem,” he said.

On pricing, the outlook remains measured. While global fertiliser and input prices continue to see volatility, domestic prices are expected to remain largely stable, with only moderate increases, if any. Government intervention and policy support are likely to ensure that sharp price spikes are avoided, maintaining affordability for farmers.

The sector’s response to the current uncertainty has been marked by close coordination with policymakers. However, Alagappan cautioned that structural risks remain. India continues to be heavily dependent on imports for key fertiliser raw materials, leaving the sector exposed to global supply disruptions, currency movements, and geopolitical developments. While the near-term outlook is stable, these factors could have a bearing over the medium term.

To mitigate such risks, companies are increasingly focusing on backward integration and supply chain control. Coromandel, for instance, has expanded its presence across the value chain, including investments in overseas phosphate assets and domestic production capabilities. This strategy is aimed at improving supply security and reducing reliance on external markets.

Alongside supply-side measures, the sector is also witnessing gradual technological adoption at the farm level. The use of drones, nano fertilisers, and digital tools is gaining traction, with companies like Coromandel scaling up deployment and farmers increasingly embracing these solutions. This could support productivity improvements over time.

While immediate concerns around fertiliser availability appear contained, the sector’s longer-term resilience will depend on how effectively it addresses import dependence and navigates evolving global risks.