Sugar Mills to Sell Potassium-Rich Fertilizer PDM to Fertiliser Companies

In a significant move, sugar mills in India will now sell potassium derived from molasses, known as PDM, to fertiliser companies at a mutually agreed rate of Rs 4,263 per tonne in the current year. This decision was facilitated by the food and fertiliser ministries, addressing a long-standing issue between fertiliser companies and sugar mills.

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PDM: A Win-Win for Stakeholders

PDM, a potassium-rich fertiliser derived from ash in molasses-based distilleries, is a by-product of the sugar-based ethanol industry. By selling PDM to fertiliser companies, sugar mills can generate additional revenue and make timely payments to farmers. Simultaneously, this move will augment potash availability in the country, reducing India's dependence on imports.

Addressing Import Dependence

Currently, India relies on imports for potash, a crucial nutrient for crop growth. The manufacturing and sale of PDM will help reduce this import dependence in the fertiliser sector. This initiative aligns with the central government's efforts to promote self-sufficiency and reduce reliance on external sources.

PDM as an Alternative to MoP

PDM, with its 14.5 per cent potash content, can serve as an alternative to Muriate of Potash (MoP), which has a higher potash content of 60 per cent. Farmers can use PDM directly in the field, providing a cost-effective and locally produced option for potash fertilisation.

Subsidy and Long-Term Agreements

PDM manufacturers can also avail a subsidy of Rs 345 per tonne under the Nutrients-Based Subsidy Scheme (NBS) of the Department of Fertilizers. Additionally, sugar mills and fertiliser companies are currently discussing modalities to enter into long-term sale/purchase agreements for PDM, ensuring a stable market for this by-product.

Potential for Growth

Presently, around 5 lakh tonnes of Potash ash generated from ethanol distilleries are sold domestically, with the potential to increase production to 10-12 lakh tonnes. This untapped potential can further contribute to reducing import dependence and supporting the domestic fertiliser industry.

The sale of PDM by sugar mills to fertiliser companies marks a positive step towards reducing India's import dependence in the fertiliser sector. By utilising a by-product of the sugar-based ethanol industry, this initiative benefits sugar mills, fertiliser companies, and farmers alike, while also contributing to the government's goal of self-sufficiency in fertiliser production.