INDIA

The Indian ammonia market reached approximately 19 million tonnes in FY2023 and is projected to grow at a compound annual growth rate (CAGR) of 3.9% through the forecast period ending FY2034.

Ammonia, an inorganic compound known for its colorless appearance and distinctive, pungent odor, is commonly condensed from its gaseous state into a liquid form. This liquid ammonia readily dissolves in water to form ammonium hydroxide and is typically transported in steel cylinders. It plays a crucial role in the production of ammonium nitrate fertilizers, which release nitrogen into the soil to enhance crop and plant growth. Additionally, ammonia is a key raw material in the chemical sector for producing various chemicals such as ammonium nitrate, urea, and nitric acid, which are used extensively in pharmaceuticals, textiles, and explosives. Furthermore, ammonia is widely utilized as a refrigerant in industrial refrigeration systems, including cold storage facilities and food processing plants, due to its high efficiency and low environmental impact.

In India, the ammonia market is primarily driven by its essential role in the fertilizer industry, particularly in the production of ammonium nitrate. The domestic fertilizer sector heavily relies on ammonia for its internal consumption, underscoring its critical importance in supporting agricultural activities through the manufacture of nitrate-based fertilizers. This dependence highlights the strong correlation between the ammonia market and the agricultural sector’s need for essential fertilizers. With India experiencing increased demand for fertilizers driven by advancements in farming techniques and agricultural practices, the ammonia market is expected to see sustained growth. The anticipated rise in fertilizer demand, supported by trends such as precision agriculture and innovative farming methods, is forecasted to drive the ammonia market to approximately 28 million tonnes by FY2034.

Regionally, the Indian ammonia market is segmented into West, South, North, and East India. Historically, from FY2015 to FY2023, North India has been the leading region in the ammonia market, followed by West India. The presence of a significant number of fertilizer manufacturers in Western states has stimulated the expansion of the ammonia market in India.

In terms of end-use industries, the Indian ammonia market is divided into Fertilizer and Other sectors. The ammonium nitrate industry is the largest consumer of ammonia, holding approximately 95% of the market share as of FY2023.

Key players in the Indian ammonia market include Chambal Fertilisers and Chemicals Ltd., Deepak Fertilisers and Petrochemicals Corporation Limited, Fertilisers and Chemicals Travancore (FACT), Gujarat State Fertilizers and Chemicals (GSFC), Indian Farmers Fertiliser Co-operative Limited (IFFCO), Kanpur Fertilizers and Chemicals Limited, Kribhco Fertilizers Limited, Mangalore Chemicals and Fertilizers Limited (MCFL), Nagarjuna Fertilizers & Chemicals Ltd., Brahmaputra Valley Fertilizers Corporation Limited, and National Fertilizers Limited, among others.