Stocks to benefit after China freezes specialty fertilizer supply to India

India’s agricultural sector is facing a major disruption after China, which supplies nearly 80% of India’s specialty fertilisers, has abruptly stopped all shipments over the past two months. This move, implemented through procedural delays rather than an official ban, comes at a critical time. 

India typically imports 150,000 to 160,000 tonnes of these advanced fertilisers between June and December, a period crucial for fruit, vegetable, and high-value crop production. While China continues to export to other countries, Indian importers are left scrambling for alternatives as Chinese customs authorities refuse to clear India-bound consignments.

Specialty fertilisers, such as water-soluble fertilisers, micronutrients, nano fertilisers, and biostimulants, are vital for boosting yields, maintaining soil health, and ensuring efficient nutrient use. Their demand is rapidly rising as Indian farmers shift from traditional fertilizers to more targeted solutions.

According to the Fertilizer Association of India, the country’s micronutrient fertilizer market is projected to surpass $1 billion by 2029, with biostimulants expected to reach $734 million in the same period. However, domestic production remains limited due to high technology costs and previously low consumption volumes, making India highly vulnerable to such supply shocks.

According to IMARC Group, India’s fertilizer industry is expected to grow at a CAGR of 4.2 percent from 2024 to 2032, reaching US$16.58 billion by 2032. In FY24, total fertilizer production stood at 45.2 million tonnes, supported by strong government policies and initiatives.

This sudden halt is likely to benefit Indian specialty fertilizer manufacturers and listed companies as demand surges and local players rush to fill the gap left by Chinese suppliers. Investors are now watching specialty fertiliser stocks closely, anticipating a significant uptick in business and potential government support for domestic capacity expansion.

Here are a few specialty fertiliser stocks to benefit from as China halts supplies to India

Deepak Fertilizers and Petrochemicals Corp Limited

With a market capitalization of Rs. 19,928.53 crore, the shares of Deepak Fertilizers and Petrochemicals Corp Limited were currently trading at Rs. 1,578.65 per equity share, down nearly 0.08 percent from its previous day’s close price of Rs. 1,579.85. 

Deepak Fertilisers and Petrochemicals Corporation Limited (DFPCL) was established in 1979 and is one of India’s leading producers of fertilizers and industrial chemicals. DFPCL is a leading company in crop nutrition, specializing in specialty and water-soluble fertilizers in India. 

The company produces complex fertilizers branded as Smartek and Croptek, along with water-soluble fertilizers and Bentonite Sulphur. It has a production capacity of 300 KTPA for NP, 800 KTPA for NPK, and 57 KTPA for Bensulf. The company earns 50% of its revenue from Crop Nutrition products.

The company provides 48 specialty fertiliser products, including water-soluble fertilisers, bio-stimulants, micronutrients, and secondary nutrients. Supported by strong R&D and over 50,000 farmer demo plots, these products have consistently improved crop yield and quality in cotton, sugarcane, onions, fruits, and vegetables through extensive field trials and research.

Nagarjuna Fertilizers and Chemicals Limited

With a market capitalization of Rs. 360.04 crore, the shares of Nagarjuna Fertilizers and Chemicals Limited were currently trading at Rs. 6.02 per equity share, up nearly 0.33 percent from its previous day’s close price of Rs. 6. 

Nagarjuna Fertilizers and Chemicals Limited (NFCL), the flagship of the Nagarjuna Group, is a leading Indian manufacturer and supplier of plant nutrients, including macro and micro-fertilizers, farm management, and micro-irrigation solutions, with operations headquartered in Hyderabad.

Nagarjuna Fertilizers offers a wide range of specialty fertilizers, including water-soluble NPKs, micronutrients, and bio-fertilizers. These products support precision farming by improving nutrient efficiency, enhancing crop yields, and promoting sustainable agriculture across diverse crops and soil types in India.

UPL Limited

With a market capitalization of Rs. 55,770.22 crore, the shares of UPL Limited were currently trading at Rs. 650.10 per equity share, down nearly 1.70 percent from its previous day’s close price of Rs. 661.35. 

UPL Limited, formerly United Phosphorus Limited, is a leading Indian multinational in agrochemicals and crop protection, headquartered in Mumbai. With operations in nearly 140 countries, UPL offers crop protection, biosolutions, seeds, and specialty chemicals. 

The company offers a broad portfolio that includes water-soluble NPK fertilizers, micronutrients, and innovative biosolutions designed to enhance crop nutrition and sustainability. Through its subsidiary, Superform Chemistries Limited (formerly UPL Specialty Chemicals Limited), UPL delivers next-generation specialty chemistries for agriculture, focusing on high-performance and sustainable solutions.

Coromandel International Limited

With a market capitalization of Rs. 68,492.33 crore, the shares of Coromandel International Limited were currently trading at Rs. 2,323.05 per equity share, up nearly 1.15 percent from its previous day’s close price of Rs. 2,296.55. 

Coromandel International Limited was established in 1961 and is one of India’s leading fertilizer companies and is part of the Murugappa Group. The company manufactures and markets fertilizers, crop protection products, specialty nutrients and offers extensive agri-solutions and retail services

The company is a leader in specialty fertilizers, offering products like sulphur pastilles, water-soluble fertilizers, and secondary and micronutrient blends to support crop-specific nutrition and precision farming. The company operates 18 manufacturing facilities and markets around 4.4 million tonnes of fertilizers annually.

Written By – Nikhil Naik

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