Potash Fertilizer is also called a potassium fertiliser. Potassium is responsible for the water uptake of plants and plant health. Three major types of potash fertilizers are majorly used globally which are, potassium sulphate, potassium chloride and potassium nitrate. Potassium chloride is used for greater yield and quality. Potassium sulphate fertiliser is used to provide adequate sulphur to develop proteins and enzymes. For crops which prefer nitrogen from nitrate sources to ammonium sources, potassium nitrate is a good source of fertiliser. Cereals & grains were estimated to be the largest consuming segment of potash fertilizer in 2021. Other applications include fruits & vegetables, oil seeds & pulses and others.
Key Players in the Potash Fertilizer Market:
Nutrien will expand the production capacity of Potash Fertilizer by 20% to reach 18 Million Tons annually by 2025 despite the drop in demand due to high prices.
JSC Belaruskali, a Potash fertiliser-producing company in Belarus, declared force majure in February 2022.
Agrimin Ltd and Sinochem Fertiliser Macao Ltd signed an offtake agreement with a contract duration of 10 years in 2021 to supply 150 thousand tons of potash of sulphate from the Mackay Potash project in China.
Canada, Russia and Belarus are the top three producers of Potash Fertilizers globally. Belarus was the third largest exporter of Potash fertilizers in 2021 and Brazil, China, the United States, India and Indonesia were the major destinations of exports from Belarus.
Asia-Pacific was estimated to be the largest market for Potash Fertilizer on the back of the growing economy, population, food & beverages industry and urbanisation in countries such as China, India, Japan, South Korea etc. Asia’s 55% of the total population is estimated to reside in urban areas by 2030. As per the 14TH Five-year plan of national economic and social development, the Chinese government will raise the urbanisation rate to 65% during 2021-2025. Currently, 64.7% of the total population of China is living in urban areas. The urbanisation rate in India witnessed an increase of 1.5% on a year-on-year basis in 2021.
The growing demand of food in heavily populated countries such as China and India is also one of the significant drivers of Potash fertilizers in the region. For example, India is the second largest producer of food globally after China and the food & beverages industry of the country is driven by the growing population, foreign investment, collaborations and increasing demand for packaged juices and drinks. On the back of growing awareness towards health, the demand for fibre-enriched juices is also high on demand in the country.
The growth of the agricultural industry is also boosting the demand for Potash Fertilizer in the country backed by rising income in rural and urban areas adoption of cutting-edge technologies such as artificial intelligence, geographic information systems, drones, remote sensing technologies, blockchain, e-farming etc.
The market of potash fertilizer in 2022 declined and prices increased due to sanctions put on exports from Russia and Belarus by the US, Canada and other countries.
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