SOURCE: AFI
Indian manufacturers of trinitrotoluene (TNT), a critical ingredient in artillery shells, tank ammunition, and certain types of mines, are experiencing unprecedented demand, driving prices to historic highs. With global conflicts in Europe and the Middle East fueling the need for ammunition, TNT prices have surged to ?8.5 lakh per tonne, up from the usual ?5.5 lakh per tonne, according to industry sources.
The surge in demand for 155mm artillery shells, widely used in howitzers such as Bofors guns, has directly impacted TNT prices. As 155mm ammunition becomes a staple in ongoing conflicts, the need for TNT—a key explosive material—has spiked dramatically. Tank shells and other munitions, which also rely heavily on TNT, have further amplified this trend.
The price increase has been gradual, starting about a year ago, but it has accelerated over the past six months as global tensions and warfare have escalated. This rise has coincided with India’s emergence as a significant exporter of ammunition, enhancing its role in the international defence supply chain but also increasing pressure on domestic TNT production.
India’s TNT supply is dominated by a few key players:
- Munitions India Limited (MIL): The largest producer of TNT and other high-energy materials, headquartered in Pune.
- Solar Industries Limited: A Nagpur-based manufacturer with a strong presence in the explosives sector.
- Special Blasts Limited (SBL): Another Nagpur-based company, which recently opened a new facility in Katol dedicated to serving the foreign market.
These manufacturers also produce high-energy materials like HMX and RDX, which are in similar demand. However, the limited number of suppliers has contributed to the sharp price increases, as production struggles to keep pace with soaring international demand.
The global appetite for ammunition has transformed India into a major player in the defence export sector. SBL, in particular, has prioritized international clients, with its new Katol facility initially catering exclusively to foreign markets. This export-driven focus has added to the strain on domestic supply, contributing to the price hike.
The rising costs of TNT are reflective of broader trends in the global defence industry, where conflicts are reshaping supply chains and driving up prices for essential materials. While India benefits from increased export opportunities, the domestic defence sector faces challenges in maintaining cost-effective production for its own requirements.