Canadian firm to supply 15 lakh MT potash to India annually

Canadian firm Canpotex will supply up to 15 lakh metric tonnes of potash to India annually for 3 years, the Union Ministry of Chemicals and Fertilizers said Wednesday.

In a statement, the ministry said, “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.”

“Canpotex, Canada will supply up to 15 LMT of Potash annually for 3 years,” the statement said. Canpotex is the one of the largest suppliers of potash globally and it exports around 130 lakh MT of the product annually.

The development is significant as India is 100 per cent dependent on imports to meet its potash requirements. The country 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. The country imports approximately 40 LMT MOP annually.

For the ensuing Rabi season 2022-23, the Agriculture Ministry has pegged the requirement of MOP at 14.35 lakh metric tonnes. 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.

“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,” the statement said.

“Union Minister Chemicals & Fertilizers hailed the signing of long term agreements between the companies for supply of MOP (Muriate of Potash) 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.”

According to the statement, Mandaviya said that as part of the MoU, Canpotex, Canada will supply upto 15 LMT of Potash annually for a period of 3 years to the Indian Fertilizer companies. This supply partnership is expected to improve the fertiliser availability within the country and reduce supply side and price vulnerabilities, he said.

Mandaviya said that the government is working towards long-term MOUs for Potash and other fertilisers with countries like Russia, Israel and others.

Source link

Add a Comment

Your email address will not be published.