Indian, Israeli companies sign MoU for fertilizer as Russia-Ukraine conflict hits supply chain
Indian Potash will import 6-6.5 lakh tonnes MoP annually
Amid possible shortage and cost escalation due to the ongoing Ukraine-Russia conflict, fertilizer companies from India and Israel on Monday signed an MoU for the supply of Muriate of potash (MOP) for a period of five years, starting 2022.
The MoU between Indian Potash Ltd (IPL), under the Department of Fertilisers, Ministry of Chemicals and Fertilisers, and Israel Chemicals Ltd (ICL) will be for the period 2022 to 2027 with a yearly quantity of 6 to 6.5 lakh metric tonnes.
The MoU would prove significant in view of the affected supply chain of potash due to the escalating Ukraine-Russia war and increasing cost of potash and other fertilisers supplied from that region.
Speaking on the occasion, Union Minister of Health & Family Welfare and Chemicals & Fertilizers, Mansukh Madaviya said, “India and Israel share an extensive economic, defense, and strategic relationship based on mutual trust and cooperation. The agriculture sector in India has huge potential and provides ample opportunities to collaborate and innovate. India and Israel should work together in the field of research in fertiliser sector so that it benefits the farming community."
The Indian government is committed to enhance the agricultural production and income of farmers with judicious use of fertilisers, he added and sought cooperation of Israeli side in improving fertiliser use, and use of alternate environment friendly fertilisers, a press release from the Ministry said.
Mandaviya said that it is a landmark step towards increasing the availability of MoP in the country. This will further spur agriculture production in the country thereby improving the lives of the farming community.
It may be noted that Israel Chemicals Limited has also been working with Indian Potash Limited in operating a project titled ‘Potash for Life focused on achieving higher fertiliser use efficiency’ with an aim to increase the income of farmers.
Israel Chemicals Ltd Global President, Elad Aharonson hailed the association of his company with India through Indian Potash Ltd. "Israel Chemicals Ltd will be glad to be associated with the efforts being made in India and willingness to develop a deep association for improved technologies, logistics and application in the area of downstream fertilisers," he said.