Latest News | Madras Fertilisers Signs Pact with Dubai's Agrifields to Source 30,000 Tn of Phosphoric Acid Annually

New Delhi, Sep 30 (PTI) Madras Fertilisers Ltd has signed an MoU to annually import 30,000 tonnes of phosphoric acid solution from Dubai-based Agrifields to boost the availability of non-urea nutrients.

In an official statement, the Ministry of Chemicals and Fertilisers informed that Madras Fertilisers has signed an MoU (memorandum of Understanding) for procuring 30,000 tonnes of phosphoric acid solution from Agrifields, Dubai annually for three years. This is a significant step toward improving the availability of DAP and NPK fertilisers for Indian farmers.

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The MoU was presented to Union Minister of Chemicals and Fertilisers Mansukh Mandaviyah here on Friday.

"India's partnerships with global suppliers for ensuring a long-term supply of fertilisers to Indian farmers will also address international cartelisation," the minister said.

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About 1.67 lakh tonnes of NPKs will be produced by using this quantity of phosphoric acid.

"The MoU coming in the backdrop of prevailing uncertainties in the supply of fertilizers, particularly DAP and NPKs, will play a strong role in the fair play of economies rather than few global players managing through cartelisation.

"As the international market has seen a downward trend in phosphatic fertilisers, the same trend ought to be reflected in raw materials of fertilisers like Phosphoric Acid in the coming quarters," Mandaviya said.

The minister said that phosphoric acid is an important raw material for manufacturing DAP and other complex NPK fertilisers.

"Given India's high dependence on imports of raw material and fertiliser minerals, the government of India has been entering into such supply partnerships with global producers and suppliers for ensuring stable long-term availability of P&K fertilisers to Indian farmers," he added.

The government is making available fertilisers, namely urea and 25 grades of P&K fertilisers to farmers at subsidised prices through manufacturers/importers.

In the case of urea, the Centre fixes the maximum retail prices and reimburses the difference between the maximum retail price and production cost in the form of a subsidy.

Under the Nutrient Based Subsidy (NBS) scheme, which is being implemented since April 2010, a fixed rate of subsidy (in Rs per kg basis) is announced for nutrients namely Nitrogen (N), Phosphate (P), Potash (K) and Sulphur (S) by the government on an annual basis.

The subsidy rates per kg for the nutrients N, P, K, and S are converted into per tonne subsidies on the various P&K fertilisers covered under the NBS.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)