Canpotex to supply 15 LMT of Potash annually to Indian fertiliser companies

Canpotex to supply 15 LMT of Potash annually to Indian fertiliser companies

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 signed an MoU with Canpotex, Canada recently. The MoU was presented to Union Minister of Chemicals and Fertilizers, Dr Mansukh Mandaviya, in New Delhi today. Canpotex, Canada is amongst the largest suppliers of Potash globally, exporting around 130 lakh metric tonnes (LMT) of product annually. As part of the MoU, Canpotex, Canada will supply up to 15 LMT of Potash annually for a period of three years to the Indian fertiliser companies.

Union Minister Chemicals & Fertilizers hailed the signing of long-term agreements between the companies for the supply of MOP (Muriate of Potash) to the Indian farmers. Calling this a pathbreaking step, Dr. Mandaviya said, “The MOU will reduce both supply and price volatility and ensure a stable long-term supply of Potassic fertilisers to India. Government of India has been encouraging the domestic fertiliser industry for establishing supply linkages through long-term partnerships with resource-rich nations. Given India’s high dependence on 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.”

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“This supply partnership is expected to improve the fertiliser availability within the country and reduce supply side and price vulnerabilities,” the minister further said.

Underscoring the importance of the MOU ahead of the upcoming cropping seasons, Dr Mandaviya said, “This is a significant initiative as it will improve the availability of MOP for the farming community, uphold their welfare and contribute towards ensuring food security in the country”. He added that “this MOU will lead to the strengthening of our mutual relationship and furthering bilateral relations between the two countries”.

Dr Mandaviya highlighted that Government of India was working towards long-term MOUs for Potash and other fertilisers with countries like Russia, Israel and others. Aiming at reducing import dependence, the Department of Fertilisers has included PDM (Potash derived from Molasses) in the Nutrient Based Subsidy Scheme (NBS) to support indigenous sources of Potash. Similar initiatives have been taken by the fertiliser industry for manufacturing of Potash from Spent Wash.

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Potash, a source of Potassium, is used both for direct application as MOP as well as in combination with ‘N’ and ‘P’ nutrients in NPK fertilisers. India meets 100 per cent of its Potash requirement through imports. The country imports approximately 40 LMT MOP annually.

Canpotex is a joint venture between leading fertiliser players, Mosaic and Nutrien, and markets Potash being produced at Saskatchewan region in Canada. It is amongst the largest suppliers of Potash globally, exporting around 130 LMT of product annually to more than 40 countries and has been one of the suppliers to India.

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