Even as a section of tea planters mainly in Tamil Nadu face tightness in supplies of muriate of potash (MOP), the Indian Potash Ltd (IPL), the main vendor, has said supplies are set to ease over the next 10 days as the company had concluded agreements with global suppliers recently.

PS Gahlaut, Managing Director, IPL, said the company has signed agreements with global vendors for import of about 3.5-4 million tonnes of potash this year, higher than around 3 million tonnes last year.

Gahlaut said the conclusion of import agreements were delayed as the vendors were demanding a higher price, resulting in extended negotiations. “We have brought down the price to $422 per tonne, while suppliers were initially quoting at $700-800,” he said.

Key for growth

Admitting that there has been tightness in supplies in some areas, Gahlaut said over the next 10-15 days the supplies will open up. India imports potash from Belarus and Canada among others.

Summer rains in the tea-growing regions of Tamil Nadu over the past few days have spurred the demand for the nutrient. MOP is an important nutrient for crop such as tea, which helps in the better formation of branches. The application of MOP along with other nutrients begins with the start of pre-monsoon showers and is done in multiple rounds. Veteran tea planter N Lakshmanan said the delay in the application of the nutrient may impact yields in the coming months.

UPASI President Jeffry Rebello said well-spread rains have resulted in higher demand for MOP. “We hear that supplies are going to ease over the next week or so,” he said.

Cherian M George, CEO, Harrisons Malayalam Ltd, said the current availability of potash for tea plantations is at a comfortable level in Kerala, thanks to adequate provisions made by the Government to meet the requirements in the last fiscal. However, rising prices for imported potash compared to pre-Covid levels are hurting the sector badly with rates reaching ₹33 per kg against ₹18.

Exploring alternatives

At the same time, summer showers in High Ranges have facilitated more usage of potash and its price rise is forcing planters to explore various other options such as molasses, wood ash, etc in tea gardens to replace imported raw material. Quoting UPASI study, Cherian said South India requires 500 kg of potash per hectare which translates into a requirement of 54,000 tonnes per year.

PC Punnoose, a leading input dealer based in Idukki, said the availability of potash was more or less steady in the just-concluded fiscal and its supply in the current fiscal will depend on the government announcement of a price and subsidy for the imported material. This is likely to be announced shortly.

Widespread summer rains in different parts of the plantations has necessitated increased usage of potash for crops such as tea, cardamom. The cardamom sector requires 5,000 tonnes of potash in a year and the supply-demand was stable so far, he said.

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