Given India’s high dependence on imports of raw material and fertilizer minerals, the government has been entering into such supply partnerships with global producers and suppliers for ensuring stable long-term availability of P&K fertilizers to Indian farmers

NEW DELHI: India’s partnerships with global suppliers for long-term supply of fertilizers will also address international cartelisation, said Union Minister of Chemicals and Fertilizers, Mansukh Mandaviya on Friday.

To improve availability of DAP and NPK fertilizers Indian farmers, Madras Fertilizers Limited signed a Memorandum of Understanding (MoU) for procuring 30,000 MT of Phosphoric Acid solution from M/s Agrifields, Dubai, annually for three years.

“Approximately 1.67 LMT NPKs will be produced by using this quantity of Phosphoric Acid. This will fulfil the P2O5 requirement to produce 59.6% of total installed capacity (2.8 LMT) of complex fertilizers of MFL," Ministry of Chemicals and Fertilizers said in a statement.

The minister said that the MoU will play a strong role in fair play of economies rather than a few global players operating a cartel. “As the international market has seen a downward trend in phosphatic fertilizers, the same trend ought to be reflected in raw materials of fertilizers like phosphoric acid in the coming quarters."

Mandaviya added that phosphoric acid is an important raw material for manufacturing DAP and other complex NPK fertilizers. “Given India’s high dependence on imports of raw material and fertilizer minerals, the government has been entering into such supply partnerships with global producers and suppliers for ensuring stable long-term availability of P&K fertilizers to Indian farmers. The importance of such MoUs is accentuated ahead of upcoming cropping season as this will contribute towards ensuring food security not only in the country, but also help to strengthen global food security."

Download the Mint app and read premium stories

Log in to our website to save your bookmarks. It'll just take a moment.

You are just one step away from creating your watchlist!

Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.

Your session has expired, please login again.

You are now subscribed to our newsletters. In case you can’t find any email from our side, please check the spam folder.

This is a subscriber only feature Subscribe Now to get daily updates on WhatsApp