Economy, Business And Markets

Iran Fertilizer Market Forecast to Grow

Iran Fertilizer Market Forecast to GrowIran Fertilizer Market Forecast to Grow

The Iranian fertilizer market is projected to grow at a compound annual growth rate of over 3.5% during 2015-20 due to increasing need for improving the yield of available arable land in the country, according to the Dublin-based group Research and Market.

The government of Iran aims to attain self-sufficiency in the production of staple food crops by 2025, which is anticipated to boost fertilizer consumption over the course of the next 5-10 years, New York-based news agency PR Newswire reported.

Moreover, easing of sanctions imposed on Iran by the US and European Union is expected to increase 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 to enhance agricultural output.

Rising export demand for agricultural products is boosting domestic production in the country, and hence driving the sale 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-based fertilizers. However, demand for phosphate and potash fertilizers in the country is predominantly met through imports.

Some of the leading players operating in Iran’s fertilizer market include Pardis Petrochemical Company, Kermanshah Petrochemical Company, Khorasan Petrochemical Company, Razi Petrochemical Company and Shiraz Petrochemical Company.