Indian fertilizer firms sign MoU with Canada's Canpotex for supply of potash

29 Sep 2022 , 08:26 AM

In a significant step towards ensuring long-term fertiliser availability for the farming community, India’s fertilizer companies- Coromandel International, Chambal Fertilizers and Indian Potash Limited signed an MoU with Canpotex, Canada on September 27, 2022.

The MoU was presented to Union Minister of Chemicals and Fertilizers Dr Mansukh Mandaviya. Canpotex, Canada is amongst the largest suppliers of Potash globally, exporting around 130 LMT of product annually.

Commenting on the development, Dr Mansukh Mandaviya said, “The MOU will reduce both supply and price volatility and ensure stable long-term supply of Potassic fertilizer to India. Government of India has been encouraging the domestic fertilizer industry for establishing supply linkages through long term partnerships with resource rich nations.

Given India’s high dependence on imports of raw material and fertilizer 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.”

As part of the MoU, Canpotex, Canada will supply up to 15 LMT of Potash annually for a period of 3 years to the Indian Fertilizer companies. This supply partnership is expected to improve the fertilizer availability within the country and reduce supply side and price vulnerabilities.

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