India initiates subsidy for granulated potash to decrease import dependency

India has announced nutrient-based subsidy (NBS) for supply of granulated potash called Potash Derived from Molasses (PDM), which has 14.5% potash content. Molasses-based ethanol plants generate ash from burning of spent wash which has potash content. In 2023-24, 1.8 lakh MT of PDM has been sold while about 3.3 LMT potash ash has been sold taking the total PDM sales to about 5.1 LMT.

Potash, a source of Potassium, is used both for direct application as Muriate of Potash as well as in combination with "N" and "P" nutrients in NPK fertilizers. India used to meet 100% of its potash requirements through imports till very recently, and imports up to 40 LMT MOP annually.

In a bid to reduce import dependence for potash, which is an essential raw material required for fertilisers, the government has initiated discussion between sugar mills and fertiliser companies and the mutually agreed price of PDM has been finalised.