AMMONIUM NITRATE MARKET Challenges and Opportunities

This market has been facing stringent regulations regarding the use and handling of ammonium nitrate across various countries. Many governments have imposed strict norms for controlling the availability and end-use of ammonium nitrate to prevent its misuse for illegal activities. Several terrorist attacks in the past few decades have been carried out using improperly stored or handled ammonium nitrate. This has resulted in many countries introducing rigorous controls around procurement, storage, transport, and usage of ammonium nitrate. The regulations require manufacturers and handlers to obtain special licenses and permits. Additionally, the storage facilities are also required to install sophisticated security and monitoring systems. The stringent regulations have increased the overall cost of operations for ammonium nitrate players. Non-compliance with the regulatory standards can lead to hefty penalties and shutting down of manufacturing or storage units. The complex regulatory landscape poses a major challenge for the smooth functioning of the global ammonium nitrate market.

Market Opportunity - Advancements in Agricultural Techniques Boosting Fertilizer Usage

Advancements in agricultural techniques and practices are positively influencing the demand for ammonium nitrate in the market. The rising global population has increased the demand for food, leading farmers to boost crop production. Advanced farming techniques such as precision farming, crop rotation, and proper soil management are enabling farmers to maximize agricultural yields. This requires increased usage of fertilizers including ammonium nitrate. Adoption of these new agricultural practices is driving the consumption of ammonium nitrate-based fertilizers. Fertilizer usage is also growing in developing countries where governments are taking initiatives to enhance farm productivity.