The global potassium nitrate market to grow at a CAGR of 4.02% during the period 2017-2021.
The report, Global Potassium Nitrate Market 2017-2021, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market.
One trend in market is increase in cross-border investments and joint ventures. The countries like North America and Canada have increased their investment in the potash mining, and they are also increasing potash-based fertilizer manufacturing plant. Other countries like Germany, Jordan, China, and Chile are also developing new facilities and having expansion plans of the existing plants.
According to the report, one driver in market is subsidies for sales of fertilizers in developing nations. The market prices of fertilizers in most of the countries in sub-Saharan Africa and Southeast Asia are strictly regulated through the levy of duties and granting of subsidies. Agrarian economies such as India and Bangladesh are deficient in potash reserves and, therefore, import fertilizers or their feedstocks. This often results in huge price disruptions in the market and affects the purchase of fertilizers by farmers.
Most of Asian countries, therefore, rely on the retail price administration of fertilizers and provide incentives to fertilizer producers, sometimes to the extent of 50%-60%, to ensure affordability to farmers. This also helps these nations to achieve food security. Liberalization of the fertilizer industry and the availability of free markets might be beneficial for the industry in the long term. It might not be the same for under-developed and developing economies as they are vulnerable to price distortions.