Challenges Faced By The Fertilizer Industry In 2022

What are the challenges faced by the fertilizer industry in 2022?

The last couple of years have been hard for every industry globally. No segment has been left untouched because of the pandemic and its long-lasting impact on our society. And the agriculture sector is not different in such regards as well. And sadly, 2022 is not going to be any different for the agriculture sector, especially for fertilizer – both organic and inorganic fertilizer. So, folks dependent on the agriculture sector or even loosely associated with it need to brace themselves for the impact.

Here are some of the challenges that fertilizer – inorganic and organizer fertilizer would face this year.

1. Soaring prices of fertilizer coating material One of the biggest challenges facing the fertilizer industry is due to the supply chain issue the world is facing right now. That has resulted in tight supplies resulting in soaring prices of the anti dust agents, making it financially difficult for companies. The cost of this is naturally being passed down to the customers, significantly impacting them. Nitrogen, a requirement for corn production, is significantly impacted by soaring prices.

2. Geopolitical circumstances

If anyone has recently seen the news or even within the last few years, they are recently aware of global tension's rise. Conflicts like Russia – Ukraine, China – Taiwan, and even unrest in Kazakhstan and Belarus have significantly impacted the agriculture market due to their world trade. A tense environment hampers the free flow of trade like defoamer chemical from one point of the globe to another.

3. Energy Prices If the supply chain breakdown is not enough, the energy prices have reached a height that was unimaged before. It has also impacted the filter aid powder and other fertilizer products, soaring their prices rapidly.

4. Production expenses Several factors, including the soaring prices of materials, energy prices at an all-time high, and rising inflation, have made it difficult for agriculture sector workers to produce goods at affordable pricing.

And since the cause of this is manifold, it is highly unlikely that rising production expenses will curb effectively in the coming months. Filtration aid will likely be more expensive as the year goes by.

5. Increase global demand for urea, nitrogen, and other essential products According to research done by analysts, the global demand for urea increased by 2.9 MMT in 2020, compared to the 6 MMT increase between the year 2015 to 2019. This is a stark increase, and the trends indicate that this figure will only go up in 2022. Nitrogen has also seen an increased demand of 4.1 per cent or 2020-21 and ammonia at around 3 per cent. But, again, if one follows the trends, it is starkly obvious that these figures will only go up in the coming years. And with the supply chain and other issues the world is facing right now, it will become difficult to procure these products from usual sources, forcing businesses to turn toward the black market, etc., in search of colouring agents for fertilizer.

Finding reliable anti dust suppliers in India is not easy, especially when there is a shortage of products in the market. Luckily for you, you could not find a better companion for your needs than NAQ Global in your quest.

NAQ Global is one of leading filter aid suppliers in India, providing customers with highly satisfactory solutions since its inception. Therefore, if you are looking to buy filter aid in India, you could not make a better decision than making NAQ Global your default choice.

Reference: https://www.dailydigitalnewz.com/challenges-faced-by-fertilizer-industry/