Indian fertiliser companies Coromandel International, Chambal Fertilisers and Indian Potash Ltd have signed long-term agreements with Canpotex, Canada, for the supply of key fertiliser Muriate of Potash (MoP). The development is expected to ensure the long-term availability of this import-dependent fertiliser for the farming community. Canpotex is amongst the largest suppliers of potash globally, exporting 130 LMT of product annually.
“The MOU will reduce both supply and price volatility and ensure the stable long-term supply of Potassic fertiliser to India. The 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,” Mansukh Mandaviya, Union Minister of Chemicals & Fertilisers said.
As part of the MoU, Canpotex will supply up to 15 LMT of potash annually for three years to the Indian fertiliser companies. Potash, which is the source of potassium, is used both for direct application as MOP as well as in combination with ‘N’ & ‘P’ nutrients in NPK fertilisers. India meets 100% of its potash requirement through imports. The country imports around 40 LMT MOP annually.
The minister said India is 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 fertiliser 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 in fertiliser industries for manufacturing potash from Spent Wash.
Canpotex is a joint venture between leading fertiliser players, Mosaic and Nutrien, and markets potash being produced in the 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. The MoU for long-term supply between Canpotex and the three Indian companies was signed on September 27, 2022. s