Ukraine-Russia conflict: Fertiliser makers weigh options to source potash from other countries next fiscal

Gordon B. Johnson

Indian fertiliser businesses are checking out techniques to supply Muriate of Potash (MoP) and di-ammonium phosphate (DAP) from other nations in perspective of the very likely impediments in acquiring potential shipments from Russia and Belarus in look at of the conflict among Moscow and Ukraine.

“We are trying to get MoP and DAP from Jordan, Morocco and Canada to meet the fertilizer need for the up coming fiscal calendar year. Currently, there is enough stock with companies till March and the upcoming requirement is for the time period among April to September”, Kishor Rungta, Chairman, Fertilizer Affiliation of India (Southern Region) explained to BusinessLine.

With a prerequisite of 30 lakh tonnes, he claimed India’s potash necessity is entirely achieved by imports from Belarus and Russia. The country is also sourcing a small amount from Gulf nations around the world.

Even so, fertilizer production companies anticipate hurdles in getting potash on time due to sanctions. Also, there could be a spike in import value for MoP, which is at this time ruling at $600 per tonne adhering to the shift in procurement from other international locations, he stated.

Referring to phosphatic fertilisers, he said presently there is no lack, as firms are procuring largely from Morocco and other international locations. But there could be an enhance in the input selling price for phosphatic fertilizers this sort of as ammonia and phosphoric acid which might affect domestic creation of phosphatic fertilisers.

Also, sanctions on Russia could hit NPK fertilizer exports to India as well as the availability of all-natural gas, LNG and ammonia, top to lower availability of fertilizer inputs and increased costs. The shortage of natural gasoline is also predicted to impact the expense of generation, he said.

Rungta, who is also the Chairman and Taking care of Director of Simple fact, reported a clear photo of sanctions would evolve over the next number of times. But there could be a price maximize and force on fertiliser availability not only in India but in the whole environment, hitting the supply of fertilizer and other uncooked content inputs. He reported the Indian authorities is using all safeguards to guarantee an sufficient availability of fertiliser.

Questioned about the need of MoP for Reality, Rungta said “it is very minimal in contrast to other fertilizer manufacturing companies. Fact is ideal now focusing on environment up an NPK plant at a expense of ₹700 crore and the undertaking operate is in progress. Also, we are stabilising our caprolactam plant to make the country self-reliant in this item.”

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February 28, 2022

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