Sugar mills can now sell potash derived from molasses (PDM) to fertilizer companies and receive subsidies on their manufacture, food and public distribution secretary Sanjeev Chopra said, amid efforts by India to reduce its fertilizer imports.
The Union government said a mutually agreed price of â¹4,263 per metric tonnes (mt) has been fixed for PDM sold by sugar mills to fertilizer companies for the current year.
PDM manufacturers can also claim a subsidy at 345 per tonne at current rates under the Nutrient Based Subsidy scheme (NBS) of the department offertilizers. Sugar mills and fertilizer companies will now discuss how they can enter into long-term sale and purchase agreements for PDM.
PDM, a potassium-rich fertilizer, is a by-product of the sugar try, derived from ash in distiller molasses-based ies. India currently imports all of the potash it needs for fertilizers, in the form of muriate of potash (MOP).
The government has been trying to make India self-sufficient in fertilizers.
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