Three Indian fertiliser companies - Coromandel International, Chambal Fertilizers and Indian Potash Limited have signed a Memorandum of Understanding (MoU) with Canpotex, Canada, one of the largest suppliers of Potash globally.
“The MOU will reduce both supply and price volatility and ensure stable long-term supply of Potassic fertiliser to India,” Dr Mansukh Mandaviya, Union Minister Chemicals & Fertilizers, said.
Canpotex is a joint venture between leading fertiliser players, Mosaic and Nutrien, and markets Potash being produced at Saskatchewan region in Canada.
As part of the MoU, Canpotex, Canada will supply upto 15 LMT of Potash annually for a period of 3 years to the Indian Fertilizer companies, said the Department of Fertiliser in a statement. This supply partnership is expected to improve fertiliser availability within the country and reduce supply-side and price vulnerabilities.
Potash, which is a source of Potassium, is used both for direct application as MOP as well as in combination with ‘N’ & ‘P’ nutrients in NPK fertilizers. India meets 100% of its Potash requirement through imports. The country imports approximately 40 LMT MOP annually.
Aiming at reducing import dependence, the Department of Fertiliser has included PDM (Potash derived from Molasses) in the Nutrient Based Subsidy Scheme (NBS) scheme to support indigenous sources of Potash.