Madras Fertilisers signs MoU with Agrifields to import 30,000 tonnes of phosphoric acid a year – BusinessLine

Chennai News

Madras Fertilisers signed a memorandum of Understanding (MoU) with Dubai-based Agrifields to import 30,000 tonnes of phosphoric acid solution per year, which will ensure the availability of non-urea nutrients amid global uncertainties leading to price fluctuations.

The MoU will allow Madras Fertilisers to procure the raw material from Agrifields for the next three years. This is a significant step toward improving the availability of DAP and NPK fertilisers for Indian farmers, the Ministry of Chemicals and Fertilisers said in a statement.

“India’s partnerships with global suppliers for ensuring a long-term supply of fertilisers to Indian farmers will also address international cartelisation,” fertilizer minister Mansukh Mandaviya said in a statement. About 1.67 lakh tonnes of NPKs will be produced by using this quantity of phosphoric acid, the ministry said.

Strong role

“The MoU coming in the backdrop of prevailing uncertainties in the supply of fertilizers, particularly DAP and NPKs, will play a strong role in the fair play of economies rather than few global players managing through cartelisation. As the international market has seen a downward trend in phosphatic fertilisers, the same trend ought to be reflected in raw materials of fertilisers like Phosphoric Acid in the coming quarters,” Mandaviya said.

Given India’s high dependence on imports of raw material and fertiliser minerals, the government has been entering into such supply partnerships with global producers and suppliers for ensuring stable long-term availability of P&K fertilisers to Indian farmers, the minister said.

The imported price (CFR) of phosphoric acid has increased 48 per cent to $ 1,715 a tonne in August from $ 1,160/tonne year-ago whereas the imported DAP rates (CFR) fluctuated between $641 and $ 945 a tonne in the last year before declining to $891/tonne in August.