Indian fertilizer companies sign MOU with Canadian company Canpotex
New Delhi: In an important step towards ensuring the long-term availability of fertilizers for the farming community, Indian fertilizer companies – Coromandel International, Chambal Fertilizers and Indian Potash Limited have signed a Memorandum of Understanding with Canpotex, Canada on September 27, 2022. The MoU was presented to the Union Minister of Chemicals and Fertilizers, Dr. Mansukh Mandaviya here today. Canpotex, Canada is one of the largest potash suppliers in the world, exporting approximately 130 LMT of product per year.
The Union Minister for Chemicals and Fertilizers has welcomed the signing of long-term agreements between the companies for the supply of MOP (muriate of potash) to Indian farmers. Calling this a ground-breaking step, Dr Mansukh Mandaviya said, “The MoU will reduce both supply and price volatility and ensure long-term stable supply of potash fertilizer in India. The Indian government has encouraged the domestic fertilizer industry to establish supply links through long-term partnerships with resource-rich countries. Given India’s heavy reliance on imports of raw materials and mineral fertilizers, these partnerships ensure the availability of fertilizers and raw materials over a period of time and also provide price stability under favorable conditions. volatile markets.
He added that “under the MoU, Canpotex, Canada will supply up to 15 LMT of potash per year for a period of 3 years to Indian fertilizer companies. This supply partnership is expected to improve fertilizer availability in the country and reduce supply and price vulnerabilities.”
Highlighting the importance of the MoU ahead of the upcoming farming seasons, Dr Mandaviya said, “This is an important initiative as it will improve the availability of MOP for the farming community, maintain their well-being and contribute to ensure food security in the country. He added that this memorandum of understanding will lead to “strengthening our mutual relations and deepening bilateral relations between the two countries”.
Dr Mandaviya pointed out that the Indian government was working on long-term memorandums of understanding for potash and other fertilizers with countries like Russia, Israel and others. In an effort to reduce reliance on imports, the Fertilizer Department has included PDM (potash derived from molasses) in the Nutrient Based Subsidy (NBS) scheme to support indigenous sources of potash. Similar initiatives have been taken by the fertilizer industries for the manufacture of potash from Spent Wash.
Background:
Potash, which is a source of potassium, is used both for direct application as a MOP as well as in combination with the ‘N’ and ‘P’ nutrients in NPK fertilizers. India meets 100% of its potash needs through imports. The country imports about 40 LMT MOP per year.
Canpotex is a joint venture between major fertilizer players, Mosaic and Nutrien, and markets potash produced in the Saskatchewan region of Canada. It is among the largest potash suppliers in the world, exporting around 130 LMT of products per year to over 40 countries and has been one of the suppliers to India.
