3 Indian firms in pact with Canada's Canpotex for enhanced fertilizer availability

New Delhi [India], September 28 (ANI): Indian fertiliser companies Coromandel International, Chambal Fertilizers, and Indian Potash signed a Memorandum of Understanding with Canada-based Canpotex with an aim of ensuring long-term fertiliser availability for the farming community.

Canpotex is amongst the largest suppliers of Potash globally. 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 was presented to Union Minister of Chemicals and Fertilizers Mansukh Mandaviya hereon Wednesday.

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.

Calling this understanding a path-breaking step, minister Mandaviya stated that it would reduce both supply and price volatility and ensure a stable long-term supply of Potassic fertiliser in 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," a Ministry of Chemicals and Fertilizers statement said quoting Mandaviya.

After Canada, the government of India, minister Mandaviya said, is working towards long-term MoUs for potash and other fertilisers with countries like Russia, Israel, and others.

Aiming to reduce 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 fertiliser industries for manufacturing of Potash from Spent Wash.

Potash, a source of Potassium, is used both for direct application as MOP and in combination with 'N' & 'P' nutrients in NPK fertilizers. India meets 100 per cent of its Potash requirement through imports. The country imports approximately 40 LMT MOP annually. (ANI)

Source: Business