Public sector enterprise Rashtriya Chemicals and Fertilizers (RCF) is actively exploring opportunities to source rock phosphate from Mauritania.
Meanwhile, other Indian fertilizer companies are finalizing memorandums of understanding (MoUs) with suppliers in Togo.
These efforts are part of India’s strategic initiative to secure an uninterrupted supply of critical crop nutrients.
Government Facilitates Global Agreements for Fertilizer Security
The parliamentary standing committee on chemicals and fertilizers has highlighted the government’s role in facilitating partnerships with resource-rich nations.
According to the committee’s report, the department of fertilizers has been encouraging Indian companies to establish agreements, MoUs, and joint ventures with international suppliers to ensure a steady supply of raw materials, intermediates, and finished fertilizers.
Expanding Global Outreach
The department of fertilizers has initiated discussions with representatives from countries such as Togo, Nauru, Russia, and Belarus to secure raw materials at competitive prices.
As part of these efforts, Indian companies are finalizing MoUs with Togolese suppliers for rock phosphate. Simultaneously, RCF is negotiating potential supply arrangements with Mauritania.
Ensuring Affordable Fertilizer for Farmers
The committee praised the department of fertilizers for its commitment to providing quality fertilizers at affordable prices to India’s 140 million farmers.
The government’s planned approach to production, imports, and distribution ensures farmers receive fertilizers on time during each cropping season.
Concerns Over Mineral Mine Auctions
The committee expressed concerns about recent policy changes by the ministry of mines.
The inclusion of phosphatic and potassic minerals in the list of ‘Critical and Strategic Minerals’ has opened these resources for auction, prioritizing state revenue.
This change requires fertilizer companies to compete in auctions for new mineral mines.
The report criticized the government’s decision to classify the fertilizer sector as a “Non-Strategic Sector,” which pushes for disinvestment of public sector undertakings (PSUs), while categorizing phosphatic and potassic minerals as “Critical and Strategic.”
The committee called this approach contradictory.
Advocating Preferential Allotment for PSUs
The panel urged the government to prioritize PSUs in mineral mine allotments.
It emphasized the historical importance of PSUs in fertilizer production and recommended granting them preferential access to critical mineral resources.
Transitioning to Direct Cash Transfers
Since 2018, the government has implemented direct benefit transfer (DBT) in fertilizers, providing 100% subsidy payments to manufacturers based on actual sales.
As reported by thehindubusinessline.com, however, the committee suggested it is time to shift to a direct cash transfer model for greater efficiency and transparency.
