Urea, also popularly known as Carbamide, is a crystalline colorless diamide form of carbonic acid. It is widely used as a fertilizer, a feed supplement, as a reagent, etc. Urea is manufactured by the reaction of carbon dioxide with ammonia. It is later processed to make granules or prills. Urea is also the end product of the metabolic protein breakdown in all mammals.
In the agriculture industry, urea is used as a fertilizer. It is used as an alternative supplement of protein and helps in providing nitrogen to the crops. Urea is also used to produce urea-formaldehyde resins, melamine, diesel exhaust fluids, and livestock feed, and their growing demand is supporting the growth of the market. Urea-formaldehyde compounds are widely used as slow-release sources of nitrogen in agriculture.
Qatar Fertilizer Company, CF Industries, SABIC, Yara International ASA, Koch Fertilizer LLC, OCI Industries, EuroChem, Hubei Chemical Fertilizer Company, Luxi Chemical Group, Zaklady Azotowe Pulawy SA, Sichuan Lutianhua are the top players of urea in the world.
Russia is the largest exporter of urea with net exports of around 7500 kilo tons in 2023. China is the second largest exporter with net exports of more than 5300 kilotons in 2023. Brazil is the largest importer with more than 7500 kilo tons imports in 2023.
The growing agriculture sector has been favoring the market growth of urea. Urea and its derivatives are widely used as fertilizers in most of markets, including North America, Brazil, and India. The growing demand for N-fertilisers to promote plant growth is providing a push to the demand for urea. The nutrient composition made by urea improves the productivity of the soil and enhances its nutrient constituency which provides plants and crops with relevant elements, boosting the plant life. Developing countries like China, Japan, India, Korea, and Brazil are likely to witness increased demand for urea as compared to other countries due to its increasing utilization in the country’s agriculture sector.
Urea is the major fertilizer used in agriculture. Urea emits emissions of ammonia and carbon dioxide which is harmful to human health and the ecosystem. Rising awareness of consumers for consuming organic fruits and vegetables is hindering the demand for urea in fertilizers in the agriculture industry. Organic farming in the agricultural industry uses biological fertilizers and pest controls derived from plant and animal wastes.
The awareness of alternative farming techniques is increasing globally. People are trying to avoid the use of chemical fertilizers. The government of India has initiated a scheme of Paramparagat Krishi Vikas Yojna (PKVY) where chemical-free farming techniques are practiced. These techniques are said to hinder the growth of urea globally.
Urea releases harmful pollutants like ammonia, etc during its manufacturing process. The concentration of ammonia in the soil makes it more acidic which reduces the soil’s natural fertility and also destroys the microorganisms in the soil. Excessive use of fertilizer has adverse effects on seeding growth, seed germination, and early plant growth in soil Plants and crops are damaged due to the lack of necessary nutrients and the increasing toxicity of ammonia and carbon dioxide. Several countries in the Western Europe region are banning the use of solid urea fertilizers for their agricultural practices. Stringent government restrictions on using urea in agriculture and for other purposes is expected to restrain the urea market growth.
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