NEW DELHI, Sept. 28 (Xinhua) -- India's fertiliser companies, Coromandel International, Chambal Fertilizers and Indian Potash Limited, signed a memorandum of understanding (MoU) with Canada's Canpotex for the supply of potash, officials said Wednesday.
According to the MoU, Canpotex, as one of the largest potash suppliers globally, will supply up to 15 lakh (1.5 million) metric tons of potash annually for a period of three years to the Indian fertilizer companies.
Indian Minister of Chemicals and Fertilizers Mansukh Mandaviya described the development as "a path-breaking step" and stated the MoU will reduce both supply and price volatility and ensure the stable long-term supply of potassic fertiliser to India.
"The government of India has been encouraging the domestic fertiliser industry for establishing supply linkages through long-term partnerships with resource-rich nations," he said.
"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 minister, the supply partnership is expected to improve fertiliser availability within the country and reduce supply side and price vulnerabilities.
The development is viewed as a significant step toward ensuring long-term fertiliser availability for the farming community in India.
"This is a significant initiative as it will improve the availability of Muriate of Potash (MOP) for the farming community, uphold their welfare and contribute toward ensuring food security in the country," Mandaviya said.
The Ministry of Chemicals and Fertilizers said Wednesday that India meets 100 percent of its potash requirement through imports. ■
