The global phosphate industry underpins modern agriculture and various industrial applications, with the market valued at $23.2 billion in 2023 and forecast to reach $29.5 billion by 2030. Growth is driven largely by the fertilizer segment, estimated at $61.4 billion in 2025 and projected to hit $101 billion by 2035.
The industry is rapidly embracing innovation to meet sustainability and efficiency goals. Notable global trends encompass:
- Enhanced‐efficiency fertilizers tailored to soil moisture and crop cycles.
- Water-soluble phosphate grades for precise drip and fertigation systems.
- Integration of precision-agriculture tools such as variable-rate spreaders, drones, and blockchain traceability.
- Circular-economy initiatives that recover phosphates from wastewater and mine tailings.
In India, phosphate demand is accelerating under balanced-nutrient subsidy schemes, making it the fastest-growing national market in 2025. Domestic DAP inventories fell to 1.56 million tonnes by July 2025, prompting major import agreements:
- 3.1 million tonnes per year of Saudi DAP/NPS over five years.
- 2.5 million tonnes of Moroccan DAP and TSP contracted for 2025 deliveries.
- Policy incentives for precision-farming practices to boost nutrient-use efficiency.
Despite robust growth, the industry faces both challenges and opportunities. Key considerations include:
- Volatile phosphate-rock and ammonia feedstock prices that pressure producer margins.
- Stricter environmental regulations driving R&D in slow-release and low-carbon technologies.
- Expanding demand from emerging economies offering new growth corridors.
Navigating these dynamics will require integrated supply-chain resilience, strategic technology adoption, and continued commitment to sustainable practices.
Based on the current scenarios, we will now look at stocks that could potentially initiate a long opportunity over the next few weeks.
Best stocks to buy from phosphate industry by Raja Venkatraman
Madhya Bharat Agro Products Ltd (MBAPL Cmp 422.40)
MBAPL:Buy above 422 and on dips near 405 with stop below 398 for a rise towards 470 – 490.
- Why it’s recommended: The stock has been undergoing some consolidation and in the last couple of days steady buying interest has helped to curtail the bearish momentum. With demand at every decline has pushed the prices ahead. Ahead of the next week the prices have pushed beyond the median line that spells well for the counter. The RSI has dipped into the neutral zone and is looking for a revival to push for more upside and can be considered as a continuation of positive sign of resumption.
- Key metrics:
- P/E: 49.88
- 52-week high: ₹465
- Volume: 203.64 K
- Technical analysis: Support at ₹345, resistance at ₹490.
- Risk factors:Regulatory policy changes affecting the fertilizer industry, high dependence on government subsidies, volatility in raw material prices, and the impact of monsoon vagaries on agriculture.
- Buy: above 422 and dips to ₹405.
- Target price: ₹470-490 in 1 month.
- Stop loss: ₹398.
Khaitan Chemicals And Fertilizers Ltd (KHAICHEM Cmp 103.72)
KHAICHEM:Buy above 105 and dips to ₹99, stop ₹97 target ₹113-116
- Why it’s recommended: This company holds a market leadership position in Single Super Phosphate (SSP) fertilizers and manufactures a range of other chemicals. This counter has managed to hold above key resistance zones to head strongly higher in the latter half of the week. The pullback post its upward charge seen lately offers us an opportunity to initiate some long. With the TS line firmly inching higher since last few days as per Ichimoku TS & KS lines are hinting at possible upward drift.
- Key metrics:
- P/E: 25.22
- 52-week high: ₹114.28
- Volume: 10.50M
- Technical analysis: Support at ₹350, resistance at ₹500.
- Risk factors: The company’s debt-to-equity ratio,price volatility for raw materials like rock phosphate and sulphuric acid, exposure to foreign exchange rate fluctuations, government policy changes.
- Buy: CMP and dips to ₹99.
- Target price: ₹113-116 in 1 month.
- Stop loss: ₹97.
Paradeep Phosphates Ltd (PARADEEP Cmp 224.77)
PARADEEP:Buy CMP and dips to ₹211, stop ₹205 target ₹250-260
- Why it’s recommended: Paradeep Phosphates due to its strong financial performance, evidenced by robust sales and profit growth, positive operational trends, significant capacity expansion, and a strong market position in the Indian fertilizer industry. The trends have been consolidating over the past few days and the steady price despite the market declines indicate the prices may pick up once the bullish momentum is reinstated. Consider a long at current levels.
- Key metrics:
- P/E: 22.83
- 52-week high: ₹234.05
- Volume: 413.61 K
- Technical analysis: Support at ₹100, resistance at ₹140.
- Risk factors: Issues arise rising input costs, price volatility for raw materials like rock phosphate and sulphuric acid, exposure to foreign exchange rate fluctuations, government policy changes.
- Buy: CMP and dips to ₹211.
- Target price: ₹250-260 in 1 month.
- Stop loss: ₹205.
Conclusion
While Q4 FY2025 results were uneven—marked by softer margins at some majors offset by cost benefits from easing phosphate‐rock and ammonia prices—the Indian phosphate fertilizer sector is gearing up for a structural re-rating. Government measures to diversify away from Chinese DAP imports, expanded balanced-nutrient subsidies, and rising farm income are driving a sharp uptick in domestic demand.
At the same time, sustainability trends—fuelled by enhanced-efficiency formulations, precision fertigation uptake, and low-carbon production initiatives—are reshaping the industry’s long-term growth trajectory. As policymakers double down on import curbs and farmers embrace next-generation phosphate products, fertilizer stocks are poised to shift from purely cyclical agribusiness plays into strategic portfolio anchors.
Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.
Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
