In a major step to ensure long-term availability of fertilizers to the farming community, Indian fertilizer companies – Coromandel International, Chambal Fertilizers and Indian Potash Limited signed a memorandum of understanding with Canpotex in Canada on 27 September 2022. An MoU was submitted to the Union Minister for Chemicals. and fertilizers Dr. Mansukh Mandaviya, here today. Canpotex in Canada is among the largest suppliers of potash in the world, exporting approximately 130 LMT of product annually.
The Union Minister of Chemicals & Fertilizers welcomed the signing of long-term agreements between the companies to supply MOP (Muriate of Potash) to Indian farmers. Dr. Describing the move as a breakthrough, Mansukh Mandaviya said, “The MoU will reduce both supply and price fluctuations and ensure stable long-term supply of potassium fertilizers to India.
The Indian government is encouraging the domestic fertilizer industry to establish supply links through long-term partnerships with resource-rich nations. Given India’s high dependence on imports of raw materials and mineral fertilizers, these partnerships provide assured availability of fertilizers and raw materials over a period of time and also offer price stability in volatile market conditions.
He added that “Under the MoU, Canpotex, Canada will supply up to 15 LMT of potash per annum for 3 years to Indian fertilizer companies. This supply partnership is expected to improve fertilizer availability in the country and reduce supply and price vulnerabilities.
Dr. Stressing the importance of the MoU ahead of the upcoming harvest seasons, Mandaviya said “this is a significant initiative as it will improve the availability of ILO to the farming community, promote their well-being and contribute to ensuring food security in the country”. He added that this memorandum will lead to “strengthening our mutual relations and deepening bilateral relations between the two countries.”
Dr Mandaviya highlighted that the Government of India is working on long-term MoUs for potash and other fertilizers with countries like Russia, Israel and others. In order to reduce import dependency, the Department of Fertilizer has included PDM (molasses derived potash) in the Nutrient Based Subsidy Scheme (NBS) to promote domestic sources of potash. Similar initiatives have been taken in the fertilizer industry to produce potash from Spent Wash.
Potash, which is a source of potassium, is used both for direct application as MOP and in combination with “N” and “P” nutrients in NPK fertilizers. India meets 100% of its potash needs through imports. The country imports approximately 40 LMT MOP per year. Canpotex is a joint venture between leading fertilizer players, MosaicandNutrien, and markets potash produced in the Saskatchewan region of Canada. It is among the largest suppliers of potash worldwide, exporting approximately 130 LMT of product annually to more than 40 countries and is one of the suppliers to India.
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