China+1 Strategy – Boosting India’s Specialty Fertilizer

For years, China was the invisible hand behind the world’s agriculture - its factories powered the global food chain. That dependence became painfully clear when supply shocks, export bans, and price surges rippled through farms across continents. Today, as trade tensions deepen and sustainability standards tighten, the world is actively looking beyond China. Fertilizers, which might often be seen as basic commodities, are now at the heart of a global reset within the agriculture industry. 

India stands to benefit from this the most. But it isn’t about copying China’s volume game. It’s about building smarter, cleaner, high-value fertilizer systems that respond to the evolving science of soil and the economics of farming. 

Let’s explore the why, how, and what's next, breaking down the numbers, economics, policies, and technology roadmap for India’s specialty fertilizer rise under the China+1 strategy.

Why Now? Drivers Behind China+1 for Specialty Fertilizers

The global pivot away from China is not just a geopolitical story; it’s an industrial and sustainability reset throughout. Some of the factors fueling the shift include:

1.Overdependence on China: India currently imports over 80% of its specialty fertilizers directly from China. The remaining 20% is supplied indirectly via Chinese channels. See the issue? In total, India is around 95% dependent on Chinese sources, including specialty fertilizers costs apart from the classic NPKs (Nitrogen, Potassium, and Phosphorus fertilizers).

2.Geopolitical Risk and Tariffs: China’s tightening export controls on fertilizers and intermediates, first introduced during the 2022 energy crisis and reimposed in 2025, have together reshaped global dynamics. The US-China trade tensions, Europe’s push for strategic de-risking, and China's focus on protecting domestic supply have created ripple effects across the global agriculture industry.
In total, India is around 95% dependent on Chinese sources, including specialty fertilizers apart from the classic NPKs (Nitrogen, Potassium, and Phosphorus fertilizers).

3.Sudden Increase in Prices: Across Africa, Asia, and Latin America, farmers face rising fertilizer costs and degrading soil health. When China began reimposing export curbs in 2025, India saw price surges of nearly 40% in specialty segments, and supply constraints hit the horticulture and cash crops vertical in particular. China plans to reimpose export restrictions from October 2025 onward, further risking high prices again.

4.Regulatory and ESG Pressures on Buyers: Multinationals and agri-retailers now face ESG-linked audits and carbon disclosure needs. Sourcing fertilizers from regions with cleaner, more transparent manufacturing has become a top-level priority. Hence, there is a need for an alternative to China.

What Makes Specialty Fertilizers So Important?

Unlike bulk fertilizers that flood the soil with nitrogen or phosphate, specialty fertilizers release nutrients precisely when and where crops need them. They improve Nutrient Use Efficiency (NUE) by up to 30-40%, cut wastage, and reduce emissions, making them essential for sustainable and precision farming.

India’s export share: <5% of global trade, a gap that can be filled under the China+1 diversification wave.

India’s specialty fertilizer market (2025 est.): USD 1.27 billion, projected to reach USD 1.77 billion by 2030 (CAGR ~6.8%).

Global specialty fertilizer market (2023): USD 36.2 billion, projected to reach USD 53.0 billion by 2030 (CAGR ~5.7%).

With water-soluble, nano, and controlled-release formulations on the rise, specialty fertilizers are no longer niche; they’re the future of farming.

India’s Advantage: From Soil Science to Supply Chains

India’s strength comes primarily from how seamlessly we integrate academic R&D, industrial production, and real-world farming as a country. Additionally, India boasts of several other key advantages.

• Geographical Proximity: India is closer to most of the key emerging fertilizer markets, such as those in Africa and Southeast Asia. This gives a competitive advantage in terms of reducing shipping times and saving logistical costs. With regional trade partnerships under the India-Africa Forum Summit (IAFS) and India-ASEAN initiatives, Indian fertilizer exports are finding easier market access to most regions. 
  
• Strong R&D Backbone: India’s research ecosystem is deeply interlinked. Institutions like ICAR, CSIR, and IITs, along with private innovators, are leading breakthroughs in soil microbiome research, nano-fertilizers, and bio-stimulants.
  
• Government Policies: India’s R&D and Innovation (RDI) Scheme 2025 is a marquee policy. It sets aside ₹1 lakh crore (~USD 12 billion) in long-tenor capital for frontier technologies, including green chemistry and agri-tech innovations.
  
• Domestic Demands: Farmers in India are gradually adopting more specialty fertilizers. PM-PRANAM (Promoting Renewable and Alternative Nutrients for Agriculture Management) incentivizes states to cut chemical fertilizer use by 10% annually, creating an internal and ready market for specialty fertilizers.

The Road Ahead: Roadmap for India’s Growth

India’s fertilizer research is strong on the academic side, but it remains fragmented when translating lab findings into market-ready products. To bridge this gap, we need to take several key steps.

1. Link R&D with Manufacturing

India’s growing Contract Research Organizations (CROs) and Contract Manufacturing Organizations (CMOs) network can play a key role in co-developing fertilizers and make them more efficient and sustainable.

2. Create Export-Ready Infrastructure

Ports like Kandla, Tuticorin, and Vizag can be developed as dedicated export zones for high-value fertilizers, equipped with testing labs, packaging hubs, and climate-controlled storage. Public-private partnerships could modernize rail and container connectivity between fertilizer clusters.

3. Strengthen Green Chemistry Incentives

Provide GST credits and subsidies for renewable or low-carbon coating materials like biodegradable lignosulfonates and chitosan-based polymers. Encourage fertilizer producers to adopt zero-liquid discharge (ZLD) systems, solar heating, and process intensification technologies to reduce emissions by up to 25%.

4. Upskill Farmers & Distributors

Expand the role of Krishi Vigyan Kendras (KVKs) and agricultural universities to run localized demonstrations on fertigation, drip systems, and micro-nutrient management.

5. Foster Global Partnerships

India should extend its focus on markets in Africa, Latin America, and Southeast Asia. All these are regions with similar soil and crop profiles, where farmers look for affordable and sustainable nutrient solutions. Through joint ventures, technology exchanges, and co-branded formulations, Indian manufacturers can put themselves on the global agri-value chain. By connecting research labs, pilot plants, and full-scale production facilities, India can accelerate the development of specialty fertilizers.

Inside Scimplify’s New Pune Facility for Fertilizers

At the heart of this shift is innovation on the ground, powered by Scimplify’s new manufacturing unit in Pune, Maharashtra. This state-of-the-art manufacturing facility is dedicated entirely to fertilizer intermediates and formulations, built to serve both India’s domestic precision farming needs and global specialty fertilizer demand.

Backed by a team of scientists and engineers, the unit’s goal is to build high-margin, sustainable formulations that address real-world agricultural challenges and not just market trends. It focuses on process optimization, green chemistry, and supply reliability, hallmarks of a next-generation chemical ecosystem.

Within months of commencing operations, the Pune unit achieved a major milestone: its first international shipment to West Africa, marking Scimplify’s formal entry into the global fertilizer trade. This milestone reflects not just operational success, but India’s broader capability to lead the next phase of value-added, sustainable fertilizer manufacturing. In an industry long dominated by bulk products, Scimplify’s Pune facility embodies what the China+1 shift truly means, moving from commodity manufacturing to chemistry-led value creation.

Write to us at info@scimplify.com to explore how Scimplify can accelerate your specialty fertilizer and agrochemical innovations from lab-scale R&D to commercial manufacturing with precision, compliance, and global scalability.