Shortage of potash to adversely impact tea plantations in the south

The shortage of Muriate of Potash (MOP) and the substantial increase in its prices in recent days has put tea planters in South India in a fix.

MOP is an important nutrient for a crop like tea, which helps in better formation of branches that are vital for a tea plant.

However, the non-availability of the manure is severely affecting plantations as the time window for its application is fast receding due to the withdrawal of rains, sources in the industry told BusinessLine .

MOP prices have shot up to around ₹34,000 per tonne, triggering concerns among planters. The price was ₹20,800 per tonne, inclusive of 5 per cent GST in the last one month, and the surge during this period was almost 63 per cent. The yearly requirement of MOP for tea plantations is estimated at 40,371 tonnes.

According to sources, a minimum of four to five rounds of manuring is required in a year. As such, the price rise is a worrying factor, as the cost per kg will go up from ₹20 to ₹35. Given the scenario, the source said plantations in south India will be compelled to restrict the usage of MOP, which will have an impact on total tea production and also have long-term implications for tea bushes that will turn unhealthy.

M.P. Cherian, President, UPASI, said the planters' body has sought the Ministry of Chemicals and Fertilisers’ intervention for the release of fertiliser to plantation growing southern states on a priority basis. He has also sought the government’s intervention to help the sector procure MOP at lower prices.

Transportation of imported MOP

Highly placed sources in the plantation sector in Kerala pointed out that around 30,000 tonnes of imported MOP has been lying idle at Kakinada Port in Andhra Pradesh for the last two-and-a-half months. The absence of sufficient rail rakes is reported to be the reason for the non-delivery of manure across South Indian destinations. The timely delivery of cargo from the port is likely to resolve the crisis across plantations, especially in Kerala, which needs around 6,000 tonnes in the current season, the sources added.

Kakinada Port officials have also confirmed the presence of cargo in the port area and maintain that transportation is expected to start shortly.

A senior official in a leading tea manufacturing company said plantations are already facing a crisis on account of a host of issues and the fertiliser shortage will force companies to drastically cut down inputs to plants, which will in turn affect production. However, he went on to add that the emerging situation will not have any impact on retail prices of tea, as pricing would depend on so many different factors.

N. Lakshmanan Chettiar, a tea planter in Madurai, said the present scenario of an increase in the price of potash, will have severe ramifications in the short and long term on the financials of the plantation sector, especially tea. The international prices for potash have surged and the value of the Indian Rupee has also declined during the past three months.

COMMENT NOW