Indian Potash Limited (IPL), a wholly-owned subsidiary of Indian Farmers Fertilizer Cooperative, signed a Memorandum of Understanding (MoU) with Israel Chemicals Limited (ICL) for providing Muriate of Potash (MOP) from 2022 to 2027. The annual quantity supply would be 6 to 6.5 LMT.
The MoU would be helpful, particularly in light of a strained potash supply chain caused by the Ukraine-Russia war. It has led to the rising cost of potash and other fertilizers supplied from that region.
It is a practice that Indian farmers begin planting crops including rice, cotton and soybean as soon as the rainy season hits in June.
For the entire annual consumption of 4 million to 5 million tonnes of potash, India heavily depends on imports, with a third of it coming from Belarus and Russia. Belarus, which is landlocked country, exports through Russian and Lithuanian ports.
Following Russia’s invasion of Ukraine, maritime routes have been shut down, and western sanctions against Moscow, which has termed its operations in Ukraine as a “special military operation,” have made trading with Russian and Belarusian companies nearly impossible.
IPL, reportedly, has planned to purchase 1.2 million tonnes of Potash from Canada; 600,000 tonnes from Israel, and 300,000 from Jordan in 2022 to mitigate the impact posed by the supply chain disruptions from Russia and Belarus.
The Imports Of Fertilizers In The Last 5 Years:
Source: Department of Commerce ( FY22 Figures Are Year To Date)The Union Minister of Health & Family Welfare and Chemicals & Fertilizers, Dr Mansukh Madaviya, on the occasion, said that “India and Israel share an extensive economic, defence, and strategic relationship based on mutual trust and cooperation. The agriculture sector in India has huge potential and provides ample opportunities to collaborate and innovate. India and Israel should work together in the field of Research in the Fertilizer sector so that it benefits the farming community.”
India-Israel Partnership For Potash!
Indian Potash Ltd signs MoU with Israel Chemicals Ltd for the supply of Muriate of Potash.
This will:
⬆️ Increase availability of MOP
🌾 Propel agriculture production
👨🏻🌾 Improve lives of our farming community
📖 https://t.co/KyfdufpRqw pic.twitter.com/Wan6HNBAGK
— Dr Mansukh Mandaviya (@mansukhmandviya) March 21, 2022
He added it is an important step that will boost the availability of MOP in the country, ultimately providing a push to agriculture production in the country, thereby easing the lives of the farming community.
Mr Elad Aharonson, Global President, M/s. Israel Chemicals Limited hailed his company’s association with India through Indian Potash Limited and stated that M/s. Israel Chemicals Limited is keen to develop a deep association for better technologies, logistics and application in the field of downstream fertilizers.
Besides, the Israeli delegation invited the Chemicals & Fertilizers Minister to visit Israel to look at the technological advancement made by the country in the field of agriculture and fertilizer sector, winning over land and water constraints.