To ensure stability in the supplies of soil nutrients four fertiliser firms – state-run National Fertilisers Limited and Rashtriya Chemicals and Fertilisers Ltd and Chambal Fertilisers and Chemicals Ltd and Paradeep Phosphates Ltd from the private sector– have signed a memorandum of understanding (MoU) with Morocco’s OCP Group for annual imports of 1.75 million tonne (MT) of phosphorus (P) and potassium (K) fertilisers.
“This will immensely benefit the farming community in India and contribute towards ensuring food security,” Fertiliser minister Mansukh Mandaviya stated in a tweet after signing of MoU at Rabat, Morocco on Saturday.
As per the MoU, one MT of diammonium phosphate (DAP), 0.7 MT of triple superphosphate (TSP) and 0.05 MT of murate of potash (MOP) will be imported to meet the domestic requirements of the soil nutrients varieties for next one year.
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“Our customized solution TSP significantly contributes to increasing yields, improving farmers’ incomes and accelerating the implementation of sustainable agricultural practices,” according to a statement by Soufiyane El Kassi, Chairman and CEO, OCP Nutricrops, OCP group’s subsidiary dedicated to soil health and plant fertilization solutions.
India has been discussing with several countries s including Senegal, Jordan, Israel, Oman, Russia, Canada and Saudi Arabia for ensuring assured supplies of non-urea fertiliser such DAP and NPK from countries,
The country imports about half of its requirement of DAP. Around 25% of urea and 15% of NPK fertilizer requirements are met through imports. The domestic MoP demand is met solely through imports (from Belarus, Canada and Jordan, etc).
“We are increasing domestic production and making long term arrangements for imports with exporter countries. It will give us an opportunity to get fertiliser at our price,” he said, citing that the import price of DAP had been brought down from $ 1000/ tonne prevailed in April, 2022 to around $ 743/tonne currently.
Mandaviya recently said that in the next two years India will be a price settler for fertiliser in the global market.
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In October, 2022, Rashtriya Chemicals and Fertilizers Ltd signed MoU with K Plus S Middle East FZE DMCC, a subsidiary of Germany’s K+S Minerals and Agriculture GmBH for supply of around 0.1 MT of MOP annually till 2025 at a discounted India specific price.
Coromandel International, Chambal Fertilizers and Indian Potash Limited in September, 2022 signed an MoU with Canpotex, Canada for import of potash
In August last year, India and Saudi Arabia had signed a pact for an annual supply of 2.5 MT of ammonia and DAP, NPK fertilisers till 2025.
At the G20 Summit in Bali last year, PM Narendra Modi had said “today’s fertilizer shortage becomes tomorrow’s food crisis,”.