India's fertiliser companies enter MoU with Canadian firm to ensure potash availability
New Delhi: In a significant step towards ensuring long-term fertiliser availability for the farming community, India's fertiliser companies- Coromandel International, Chambal Fertilizers and Indian Potash Limited signed an MoU with Canpotex, Canada in the presence of Union Chemicals and Fertilizers Minister Mansukh Mandaviya.
Hailing the move initiated for the supply of MOP (Muriate of Potash) to farmers, Mandaviya said, "The MoU will reduce both supply and price volatility and ensure a stable long-term supply of potash fertilizer to India." "The government of India has been encouraging the domestic fertilizer industry to establish supply linkages through long term partnerships with resource rich nations. Given India's high dependence on imports of raw material and fertilizer minerals, these partnerships will provide secured availability of fertilizers and raw materials over a period of time," he said.
The minister added that as a part of the MoU, Canpotex will supply up to 15 LMT (lakh metric tonne) of potash annually for a period of three years to Indian fertilizer companies. This supply partnership is expected to improve availability in the country and reduce supply side and price vulnerabilities.
Canpotex is among the largest suppliers of potash globally, exporting around 130 LMT of product annually.
Mandaviya further said that this initiative will improve the availability of MOP ahead of the upcoming sowing season. "It will uphold their welfare and contribute towards ensuring food security in the country. The MoU will also lead to strengthening of our mutual relationship and furthering bilateral relations between the two countries," the minister said.
Aimed at reducing import dependence, the Department of Fertiliser has included PDM (Potash derived from Molasses) in the Nutrient Based Subsidy (NBS) scheme to support indigenous sources of potash. Similar initiatives have also been taken by fertilizers companies for manufacturing of potash from spent wash.
