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Indian Ammonia Market to Grow at around 1% During 2022-2027, Spurred by Significant Growth in Agriculture Sector

Published on Aug 29, 2020

According to the latest report by IMARC Group, titled "Indian Ammonia Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2022-2027," the ammonia market in India is expected to exhibit a CAGR of around 1% during 2022-2027. Ammonia (NH3) is a compound of nitrogen and hydrogen that exists as a colorless gas with a distinct odor. It is produced in the soil from the decomposition of organic matter, such as plants, animals and animal wastes and in humans during the break down of proteins in the body. It is widely used as a key component for manufacturing numerous products, such as ammonium nitrate fertilizers, that are extensively utilized for improving farm yield and promoting plant growth. Additionally, it is employed in the production of numerous pharmaceutical and cleaning products that are used across the commercial and residential segments.

We are regularly tracking the direct effect of COVID-19 on the market, along with the indirect influence of associated industries. These observations will be integrated into the report.

Indian Ammonia Market Trends:

The market is primarily driven by the growing utilization of ammonia in fertilizer production in India. Ammonia is a vital source of nitrogen that is crucial for healthy plant and crop growth. The usage of fertilizers improves the nutrient content of the soil by fortifying it with zinc and boron. This, coupled with significant growth in the Indian agricultural sector and the growing demand for food due to the increasing population, is providing a thrust to the market growth. In addition to this, the Government of India is undertaking numerous initiatives to promote the use of ammonia-based agricultural products. It is also providing subsidies to farmers and investing in the expansion of the agricultural sector, which, in turn, is creating a positive outlook for the market. Furthermore, the compound is widely used in the textile industry for manufacturing synthetic fibers, sourcing cotton and silk, and dyeing a variety of fabrics. The strong growth of the textile industry in India is, therefore, acting as a major growth-inducing factor. Apart from this, ammonia is also employed for multiple refrigerant applications, such as cold storage, food preservation and beverage production. The growing application of the compound in the mining and explosives industry is also contributing to the market growth.

Market Summary:

  • On the basis of the physical form, the market has been bifurcated into anhydrous and aqueous ammonia.
  • Based on the end use, the market has been divided into urea, ammonium phosphate fertilizers, industrial and others.
  • On the geographical front, the market is classified into Gujarat, Maharashtra, Rajasthan and others.
  • The competitive landscape of the industry has been examined in the report with the detailed profiles of the key player. Some of these players include Chambal Fertilisers and Chemicals Limited, Gujarat Narmada Valley Fertilisers and Chemicals, Indian Farmers Fertiliser Cooperative Limited (IFFCO), Krishak Bharati Cooperative Ltd (KRIBHCO), Nagarjuna Fertilizers and Chemicals Limited, Rashtriya Chemicals and Fertilizers Limited and Southern Petrochemicals Industries Limited (SPIC).


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IMARC Group is a leading market research company that offers management strategy and market research worldwide. We partner with clients in all sectors and regions to identify their highest-value opportunities, address their most critical challenges, and transform their businesses.

IMARC’s information products include major market, scientific, economic and technological developments for business leaders in pharmaceutical, industrial, and high technology organizations. Market forecasts and industry analysis for biotechnology, advanced materials, pharmaceuticals, food and beverage, travel and tourism, nanotechnology and novel processing methods are at the top of the company’s expertise.

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