The Cabinet on Wednesday approved an additional subsidy of Rs 40,000 crore for phosphate-based fertilisers for the kharif season (April-Sept), seeking to cushion farmers from a rise in input costs globally.
With supply of nearly half of the country's potash requirement hit due to sanctions against Belarus and Russia, Indian entities have tapped Canada, Israel and Jordan to import the fertiliser to ensure that farmers aren't hit by the war in Ukraine during the kharif season, which started from this month, report Dipak Dash & Sidhartha.
Supplies have been secured with 12 lakh tonne expected to be imported from Canada and another 8.8 lakh expected to be shipped from Israel and Jordan, a government official told TOI. While India needs over 20 lakh tonnes of potash during April-September, it began the period with an estimated stock of five lakh tonne and needs to import the rest with the situation getting more complex due to the war in Ukraine.
Last year, around 14 lakh tonnes had been imported from Belarus with six lakh tonne coming from Russia and other CIS countries.
The conflict has already pushed prices up by more than two times - from $280 a tonne in November to $590 in March - with the government staring at the prospect of a further increase. "There is short supply as there are very few producers globally and India is fully-dependent on imports," a government officer told TOI. He added that the companies have been directed to import as per their market share.
Potash is used as an independent fertiliser and as a raw material for Phosphatic and Potassic fertilisers. Industry sources said supply from Canada has been secured at $590 a tonne. India's annual requirement of potash is about 42.3 lakh tonnes.
(With inputs from agencies)