MFL signs 3-year pact with Dubai's Agrifields to procure 30,000 tonnes phosphoric acid annually
06 October 2022
India is forging partnerships with global suppliers for ensuring long term supply of fertilisers to Indian farmers and also to address the menace of cartelisation by a few global suppliers, union minister of chemicals and fertilizers, Dr Mansukh Mandaviya, said on Friday.
“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,” Mandaviya pointed out, adding that this, however, is not happening.
“India’s partnerships with global suppliers for ensuring long term supply of fertilisers to Indian farmers will also address international cartelization,” the minister stated following the signing of a memorandum of understanding (MoU) by Madras Fertilisers Limited with Agrifields, Dubai.
Madras Fertilizers Limited has signed an MoU for procuring 30,000 tonnes of phosphoric acid solution from Agrifields, Dubai annually for three years, in a significant step towards improving availability of DAP and NPK fertilizers for the farming community of the country, he said.
This can be used to produce approximately 1.67 lakh tones of NPKs, he said, adding that this will fulfil the P2O5 requirement to produce 59.6 per cent of total installed capacity (2.8 lakh tonnes) of complex fertilizers of MFL.
“The MoU coming in the backdrop of prevailing uncertainties in the supply of fertilisers, particularly DAP and NPKs, will play a strong role in 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,” the minister pointed out.
“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 fertiliser 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 by the upcoming cropping season as this will contribute towards ensuring food security not only in the country, but also help to strengthen global food security, he added.