India Ammonium Nitrate Market Outlook

Synopsis
The above chart is India Ammonium Nitrate Market Outlook (2018 to 2032)

Market Dynamics

india has become a significant player in the ammonium nitrate market with an array of local and international players manufacturing and supplying the fertilizers. ammonium nitrate has become the critical input of the agricultural sector, due to its multi-purpose nature, in india and around the world. in india, the fertilizer is in high demand due to its ability to enhance crop yields and soil fertility. the demand for ammonium nitrate is driven by several factors like increasing population, rising agricultural income supported by government subsidy, changing agricultural practices, and the fertilizer’s attractive price point. the increasing demand of the fertilizer across india is also supported by a network of agri-input distribution. additionally, government initiatives such as soil health cards, paramparagat krishi vikas yojana (pmkvy), and pradhan mantri fasal bima yojana (pmfby) are providing support and enabling farmers to make informed choices and receive quality agri-inputs. the indian ammonium nitrate market is projected to grow at a healthy rate due to the nation’s growing population, rising agricultural income and expanding farming practices. as per estimates, the country is expected to need 50% more fertilizer in coming 15-20 years due to its growing population. factors like increasing demand for agricultural production, rising prices of raw material, and old unmodern production technologies are driving fertilizer producers to modernize and upgrade their production units to increase the production capacity and efficiency. in order to capture the potential demand, leading fertilizer producers in india are investing in new capacity expansion and technological upgradation. for instance, nhpc ltd. is investing 600-700 crore over the next five years to upgrade its existing nitrogen ammonium nitrate producing units and setting up a new plant in lucknow. this new plant will add an estimated production capacity of 5 lakh tons annually. in addition, phosphatic fertilizers corporation ltd. (pfcl) has recently invested rs. 650 crores for setting up a new talcher plant in odisha which will have an annual capacity of 1.25 lakh tons. despite this, india is still significantly under-supplied with ammonium nitrate compared to its global counterparts and faces an impasse in the supply and distribution. moreover, while the domestic supply is limited, import of ammonium nitrate adds to the cost and reduces its competitiveness in the market. thus, despite the growing demand, india has huge potential to capitalize on with expanding its production base, increasing availability of agri-inputs, improving the agri-input distribution system, and enhancing the farmers’ access to affordable, quality fertilizers.