India ammonium nitrate market
is anticipated to register growth with an impressive CAGR in the forecast
period, 2023-2027. The market growth can be attributed to the rising demand for
ammonium nitrate in the agricultural sector as it helps in producing adequate
amount of food. Moreover, the growing concerns towards the limited arable and
the rapidly growing population have prompted the farmers to adopt quality
fertilizers such as ammonium nitrate to secure the surging food demand. Besides
this, the rapidly growing construction activities across the globe,
particularly in the urban areas, has significantly proliferated the demand for
explosives. Furthermore, the rising production and demand for manganese,
bauxite, and base materials are anticipated to propel the need for blasting
products, hence driving the demand for ammonium nitrate. In line with this, the
high investments by the leading mining companies to explore new mining sites
for valuable minerals and metals is expected to further augment the growth of
the India ammonium nitrate market.
Ammonium nitrate refers to a
white crystalline solid chemical compound that is widely utilized as a
fertilizer and as a component in some explosives. It is composed of ammonium
and nitrate and is highly soluble in water. In the agriculture industry, it is
extensively utilized as a high-nitrogen fertilizer. Ammonium nitrate is also
used as an absorbent for nitrogen oxides and as an oxidizer in rocket
propellants. It is further utilized in explosives for blasting rocks and in
mining.
Rapidly Growing Agriculture
Industry, Along with Surging Demand for Quality Food, Fuels the Market Growth.
With the growing population
and inflating disposable income of consumers, the demand for quality food has
increased. According to Ministry of Statistics and Programme Implementation,
India ranks as the second most populous country in the world after China. It is
projected that India is most likely to take over China to become the most
populous country in the world by 2027 with the population of 1,27 billion
people. Fertilizers contain a crucial macronutrient, nitrogen. Nitrogen
fertilizers are extensively utilized in the agricultural industry for crop
growth. Rapid urbanization, rise in disposable income, and changes in dietary
behavior such as preferences for quality and nutritive agricultural products
have collectively influenced food security. As a result, farmers across the
world are focusing on increasing the crop production to cater to such
bolstering food demands. Moreover, the limited availability of arable land has
significantly enhanced the adoption of fertilizers, which in turn is providing
a boost to the India ammonium nitrate market.
Increasing Construction &
Mining Activities Propels the Product Demand
As stated above, with the
increasing population, especially the rise in urban population, the need for
building residential buildings has increased. Both government and private
sectors are investing intensively in building residential infrastructures to cater
to the propelling demand for the residential sector. Moreover, the aim of the
Indian government to transform cities into smart cities is also adding to the
growth of the construction industry. Ammonium nitrate is widely utilized in the
construction of buildings. Apart from this, several mining companies are also
increasingly using ammonium nitrate to explore new mining sites in search of
valuable material. Ammonium nitrate is the primary component of slurry
explosives, and low-density ammonium nitrate is widely employed in mining
activities. It is intentionally made very porous to allow for the rapid uptake
of liquid fuel oil.