Indian firms sign MoU with Canada’s Canpotex for long-term stability of fertilisers

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Ravi S Singh

New Delhi, September 28

Ahead of the forthcoming cropping season, India's fertiliser companies have signed an MOU with Canpotex, Canada, for long-term fertiliser availability for the farming community.

Canpotex is acclaimed as one of the largest potash suppliers globally.

Indian companies Coromandel International, Chambal Fertilisers and Indian Potash Limited signed the MoU.

As per the understanding, Canpotex will supply up to 15 LMT of potash annually for three years.

Canpotex, Canada, exports around 130 LMT of the product annually.

Hailing the MoU as a "path-breaking" step, Union Chemicals and Fertilisers Minister Mansukh Mandaviya said the arrangement "will reduce both supply and price volatility and ensure stable long-term supply of potassic fertiliser to India". He said it would also ensure food security of the country.

The agreement is for the supply of MOP (muriate of potash) to the Indian farmers.

Potash, which is a source of potassium, is used both for direct application as MOP as well as in combination with 'N' and 'P' nutrients in the NPK fertilisers.

India meets 100 per cent of its potash requirement through imports. The country imports approximately 40 LMT MOP annually.

The Union government has been encouraging the domestic fertiliser industry for establishing supply linkages through long-term partnerships with resource-rich nations.

Given India's high dependence upon imports of raw material and fertiliser minerals, these partnerships provide secured availability of fertilisers and raw materials over a period of time and also offer price stability in volatile market conditions.

The global crisis caused by covid and Russia's aggression on Ukraine have reportedly disrupted and exposed the present skewed global supply and demand equilibrium.

With regard to India, its frosty relationship with China is an added cause for the country to protect its supply chain in view of agriculture being the staple of its socio-economic structure.

Mandaviya said the Union government was working towards long-term MOUs for potash and other fertilisers with several countries like Russia and Israel among others.

With an eye to reduce import dependence, the department of fertiliser has included potash derived from molasses in the nutrient-based subsidy scheme to support indigenous sources of potash.

Similar initiatives have been taken by fertiliser industries for manufacturing of potash from spent wash.

The Tribune