State-run Rashtriya Chemicals and Fertilizers (RCF) has signed a long-term agreement with the subsidiary of a German firm for import of 1,05,000 tonnes of Muriate of Potash (MoP) per annum in the next five years.
The memorandum of understanding (MoU) was signed on October 6 between RCF and K Plus S Middle East FZE DMCC, which is the subsidiary of German firm K+S Minerals and Agriculture GmbH.
The signed MoU was submitted to Minister of Chemicals and Fertilizers Mansukh Mandaviya on Tuesday.
As per the agreement, K plus S will supply 1,05,000 tonnes of MoP per annum for the period 2022 to 2025 at a discounted India specific price, an official statement said.
The MoP will be supplied to RCF for its captive consumption as well as for trading purposes. This quantity will fulfil 60 per cent of captive consumption requirement of RCF, it said.
While congratulating RCF, Mandaviya said, ''This long term agreement signed by RCF will go a long way in ensuring adequate supply of MoP at reasonable price to the Indian Farming community.'' In the current geopolitical situation when the international prices of MoP have witnessed extreme volatility, the minister said the long-term agreement signed by RCF is a significant step towards maintaining stability of price of MoP in the country.
To ensure fertiliser availability for the farming community, the government 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 fertilisers and raw materials over a period of time and also offer price stability in volatile market conditions, the statement said.
Minister of State for Chemicals and Fertilisers Bhagwanth Khuba, Fertiliser Secretary Arun Singhal, RCF Chairman and Managing Director S C Mudgerikar and other senior officials were also present.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
