Indian Potash signs five-year MOP supply deal with Israel Chemicals

MUMBAI (ICIS)–Indian Potash Ltd (IPL) has signed a deal for the supply of muriate of potash (MOP) from Israel Chemical Ltd (ICL) over five years, amid current difficulties in securing fertilizers from Russia.

From 2022-2027, ICL will supply 600,000-650,000 tonnes of MOP to IPL on annual basis, India’s Ministry of Chemicals & Fertilisers said on 21 March.

India’s agriculture sector “has huge potential and provides ample opportunities to collaborate and innovate” with Israel, said India’s chemicals and fertilizer minister Mansukh Madaviya.

India has been trying to source fertilizer imports from Canada and Israel as an alternative to Russia, to ensure sufficient supplies for its summer sowing season which starts in April.

Financial sanctions have been imposed on Russia following its invasion of Ukraine on 24 February, hampering trades with the fertilizer major.

Non-availability of Russian fertilisers has caused a global shortage.

For India, Russia accounted for nearly 17% of its MOP imports and around 60% of its NPK imports in the fiscal year ending March 2021, official data showed.

In terms of the south Asian country’s total fertilizer imports, 10-12% are sourced from Russia, Ukraine and Belarus combined.

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