Fertilizer market in Iran is rising up to the brighter future

These days to many international Fertilizer companies try to enter Iran market especially after remove sanction, in this short article we have a snap shot to the future of our market,During the past four decades, the need for chemical fertilizers in Iran has continuously increased. Each year, millions of dollars are spent on buying chemical fertilizers and the Government also provides a large amount of subsidies to help farmers in supplying chemical fertilizers. As a consequence, the related environmental hazards have led to increased consumer health risks from exposure to specific compounds such as the nitrate accumulation in agricultural products. Predicting the amount of fertilizer needed over the long-term is an essential key for ensuring food security and public health for the future. the total amount of chemical fertilizers required for Iran’s agricultural production in 2021 will be approximately 5 million tons.Fertilizer consumption (% of fertilizer production) in Iran was 70.69 as of 2012. Its highest value over the past 10 years was 237.47 in 2006, while its lowest value was 70.69 in 2012. A senior official with Iran's National Petrochemical Company (NPC) said the country is expected to produce record-breaking amounts of chemical fertilizers by March 2016.

 

- Ali-Mohammad Bossaqzadeh said the country's chemical fertilizer output will boost dramatically as new petrochemical feedstock is expected to be supplied to petrochemical plants from phases 12 and 15-21 of the massive South Pars gas field by the end of the current calendar year.

 

  He said Iran's chemical fertilizer output grew 6% year-on-year during the first half of the current Iranian calendar year to March 20, 2016. 

 

  During the six months, Iran's export of chemical fertilizers grew some 12% year-on-year, he added. 

Bossaqzadeh said the country's urea output is satisfactory and there is no domestic shortage for the item. 

 

  Iranian agricultural sector consumes 1.8 million metric tons to 2mt of urea annually. 

 

The fertilizer market in Iran is projected to grow at a CAGR of over 3.5% during 2015 - 2020 due to increasing need for improving the yield of available arable land in the country

 

Government of Iran aims to attain self-sufficiency in the production of staple food crops by 2025, which is anticipated to boost fertilizer consumption in the country over the course of next 5-10 years. Moreover, easing of sanctions imposed on Iran by the US and European Union is expected to increasing the country's trade of fertilizers and agricultural products in the coming years.

 

Fertilizers are essential for Iran's agricultural sector as a major portion of land available for cultivation has poor soil fertility. In addition, due to low precipitation levels in the country, the use of fertilizers becomes a prerequisite in order to enhance the agricultural output. Rising export demand for various agricultural products is boosting domestic crop production in the country, and hence, driving sales of fertilizers in Iran. Owing to abundant natural gas reserves in the country, Iran has a number of manufacturing facilities engaged in the production of urea and other nitrogen fertilizers. However, demand for phosphate and potash fertilizers in the country is addressed predominantly through imports.