Union Minister of Chemicals and Fertilizers, Mansukh Mandaviya said the MoU will reduce both supply and price volatility and ensure a stable long-term supple of potash fertilizer to India. “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."
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 said that this initiative will improve the availability of MOP (Muriate of potash) 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."
He added that the government was working towards long-term MoUs for potash and other fertilizers with countries like Russia, Israel and others.
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.
