New Delhi [India], September 28 (ANI): India's fertiliser companies on Wednesday signed an MOU with Canpotex, Canada, in a significant step towards ensuring long-term fertiliser availability for the farming community, said the Ministry of Chemicals and Fertilizers.
Canpotex, Canada is amongst the largest suppliers of Potash globally, exporting around 130 LMT of product annually.
Indian companies Coromandel International, Chambal Fertilisers and Indian Potash Limited signed the MoU ahead of the upcoming cropping seasons.
As per the understanding, Canpotex will supply up to 15 LMT of potash annually for three years.
Terming the MoU as a "path-breaking" step, Union Chemicals and Fertilisers Minister Mansukh Mandaviya said, "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 to establish 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," Mandaviya added
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 Government of 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) scheme to support indigenous sources of Potash. Similar initiatives have been taken in fertilisers industries for manufacturing of Potash from Spent Wash," the ministry's statement read.
Underscoring the importance of the MOU, Mandaviya said that it would improve the availability of MOP (muriate of potash) for the farming community, uphold their welfare and contribute to ensuring food security in the country
He added that this MOU will lead to "strengthening of our mutual relationship and furthering bilateral relations between the two countries".
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 Union government has been encouraging the domestic fertiliser industry for establishing supply linkages through long-term partnerships with resource-rich nations. 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. (ANI)