Canadian firm Canpotex will supply up to 15 lakh metric tonnes of potash to India annually for three years, the Union Ministry of Chemicals and Fertilizers said on Wednesday.
“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 Limited signed an MoU with Canpotex, Canada on 27th September 2022. The MoU was presented to Union Minister of Chemicals and Fertilizers Dr Mansukh Mandaviya, here today,” a ministry statement said. “Canpotex, Canada will supply up to 15 LMT of Potash annually for 3 years.”
Canpotex is the one of the largest suppliers of potash globally. It exports around 130 lakh MT of the product annually.
The development is significant as India is completely dependent on imports to meet its potash requirements. It imports around 40 lakh metric tonnes of MOP (Muriate of potash).
Potash is one of the key nutrients and is used both for direct application as MOP as well as in combination with ‘N’ & ‘P’ nutrients in NPK fertilizers.
For the ensuing Rabi season 2022-23, the Agriculture Ministry has pegged the requirement of MOP at 14.35 LMT. In addition to the opening stock of 5 LMT, the government intends to import 10 LMT of the MOP. Against the NPK requirement of 56.97 LMT, 20 LMT is available as opening stock, 51.90 LMT is production target of the NPK and 4.5 LMT is expected to be imported.
“Union Minister Chemicals & Fertilizers hailed the signing of long-term agreements between the companies for supply of MOP to the Indian farmers,” the statement said.
The statement quoted Mandaviya as saying, “The MOU will reduce both supply and price volatility and ensure stable long-term supply of Potassic fertiliser 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 fertilizers and raw materials over a period of time and also offer price stability in volatile market conditions.”