Biofertilizers in India: Growth Patterns and Export Competitiveness

Author: Manojkumar Patil, Ajayakumar, Sagar, Suman L., B. Nandita and Priyanka V.

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Abstract

This study explores the growth patterns and export competitiveness of the biofertilizer industry in India, a crucial component in promoting sustainable agriculture. Biofertilizers, containing living microorganisms, enhance soil health and crop productivity, making them integral to India’s agricultural strategy. The study examines production trends from 1992 to 2022, revealing significant growth, particularly in liquid-based biofertilizers, which expanded rapidly after their introduction in 2014. The analysis includes the Revealed Comparative Advantage (RCA) index, which tracks India's global market competitiveness in biofertilizers. Despite fluctuations, India's RCA has generally improved, indicating a strengthening position in the global market. The study also evaluates the Export Unit Value (EUV) and Import Unit Value (IUV) of biofertilizers, finding that higher export prices correlate positively with India’s RCA, while rising import prices negatively impact competitiveness. Additionally, the Transitional Probability Matrix (TPM) assesses the stability of India’s biofertilizer export markets, highlighting strong retention in key markets like Nepal, the Maldives, and Sri Lanka, but also identifying vulnerabilities in markets such as the USA and Kenya. The findings suggest that while India’s biofertilizer industry is poised for continued growth, challenges related to market volatility and competition remain. Strategic enhancements in production and export policies are recommended to sustain and strengthen India’s position in the global biofertilizer market.

Keywords

Biofertilizers, Export Competitiveness, Revealed Comparative Advantage (RCA), Transitional Probability Matrix (TPM)

Conclusion

The present study on reveals significant insights into the evolving landscape of biofertilizers in India. The findings indicate a robust growth trajectory, particularly in liquid-based biofertilizers, which have seen remarkable expansion since their introduction in 2014. The production trends underscore India's commitment to sustainable agriculture, with both carrier-based and liquid-based biofertilizers contributing to this growth, albeit with different levels of stability and growth rates. The analysis of India's export competitiveness through the Revealed Comparative Advantage (RCA) index highlights a fluctuating but generally positive trend, suggesting that India has managed to maintain a competitive edge in the global biofertilizer market despite facing challenges. The correlation between export unit values (EUV) and RCA indicates that higher export prices tend to strengthen India's comparative advantage, whereas rising import prices have a negative impact. The Transitional Probability Matrix (TPM) further elucidates the dynamics of India's biofertilizer export markets, revealing strong retention rates with key trading partners like Nepal, the Maldives, and Sri Lanka, but also highlighting potential vulnerabilities in markets like the USA and Kenya. China's absolute retention of market share indicates a significant area of strength, while other markets display varying degrees of stability. Overall, the research concludes that while India's biofertilizer industry is on a growth path with promising export potential, it faces challenges related to market volatility and competition. Strategic efforts to stabilize and expand export markets, coupled with continued innovation in biofertilizer production, will be crucial for sustaining and enhancing India's position in the global biofertilizer market

References

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How to cite this article

Manojkumar Patil, Ajayakumar, Sagar, Suman L., B. Nandita and Priyanka V. (2024). Biofertilizers in India: Growth Patterns and Export Competitiveness. Biological Forum – An International Journal, 16(8): 256-261.