Sugar mills have been granted permission to sell potash derived from molasses (PDM) to fertiliser companies, enabling them to generate additional revenue, while also benefiting from nutrient-based subsidies. The initiative aims to diminish India’s reliance on imported fertilisers. The government has facilitated an agreed-upon price of ₹4,263 per metric ton for the current year’s sale of PDM from sugar mills to fertiliser companies. Additionally, PDM manufacturers can claim a subsidy of ₹345 per ton under the Nutrient Based Subsidy Scheme (NBS) of the department of fertilisers.
Sugar mills and fertiliser companies will engage in discussions to establish long-term sale and purchase agreements for PDM. PDM, a potassium-rich fertiliser, is a by-product of the sugar-based ethanol industry, derived from ash in molasses-based distilleries.
Currently, India imports all its required potash in the form of muriate of potash (MOP). The government’s objective is to achieve self-sufficiency in fertilisers by 2025, particularly in urea production, aiming to increase production from 30 million tons to 31-31.5 million tons and substitute 2.5 million tons of demand with alternatives like nano urea and urea gold. This target could be met by establishing new plants with attractive incentives for manufacturers.
As reported by mint, India, ranked as the second-highest consumer of fertilisers after China, relies entirely on imports for MOP. Additionally, it imports 4.3 to 4.7 million tons of phosphate rock, 9.1 to 9.8 million tons of urea, 5.3 to 5.4 million tons of di-ammonium phosphate, and 1.2 to 1.4 million tons of nitrogen, phosphorus, and potassium fertilisers.
