Moneycontrol PRO
Upcoming Event : Register for INTRAZON 3.0 India's Largest Retail Intraday Traders Online Conference
you are here: HomeNewsBusiness

Coromandel International, Chambal Fertilizers and Indian Potash sign MOU with Canada's Canpotex

In a bid to lessen India's import dependence for potash on foreign countries and to mitigate supply side issues, the Ministry of Chemicals and Fertilizers oversaw the signing of an MoU between Canada based Canpotech and leading Indian fertilizer companies.

September 28, 2022 / 02:21 PM IST
Representative Image

Representative Image

  • bselive
  • nselive
Todays L/H

Fertiliser companies Coromandel International, Chambal Fertilizers and Indian Potash Limited have signed a memorandum of understanding (MoU) with Canada's Canpotex, the Ministry of Chemicals and Fertilizers announced on September 28.

The MoU was presented to the Union Minister of Chemicals and Fertilizers, Mansukh Mandaviya.

Currently India meets 100 percent of its Potash requirement through imports. Nearly 40 lakh metric tonnes (LMT)  Muriate of Potash (MOP) is imported annually.

Mansukh Mandaviya commented on the MoU being signed and emphasised its importance in improving supply linkages between India and resource rich nations vis-a-vis partnerships between India fertilizer companies and foreign fertilizer companies.

Also Read: Agri supply chain fragmented, need well-thought-out market interventions, SLCM Group’s Sabharwal says

“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.", Mandaviya said.

Detailing the conditions of the MoU the minister stated that Canpotex will supply upto 15 LMT of Potash annually for a period of 3 years to the Indian Fertilizer companies.

Also Read: Indian fertiliser sector: Is the pitch fertile for investment?

The signing of the MoU is likely to and reduce supply side and price vulnerabilities as India heavily relies on imports of potash for agriculture.

Highlighting the larger goal, the minister also talked about how improvements made in the availability of muriates of potash will improve the welfare of the agricultural community and in-turn ccontribute towards ensuring food security.

The Minister of Chemicals and Fertilizers talked about India's efforts at reducing import dependence by including Potash derived from molasses in the Nutrient Based Subsidy Scheme (NBS) scheme to support indigenous production of Potash.
Moneycontrol News
first published: Sep 28, 2022 02:20 pm