Central Government Facilitates Potash Derived from Molasses (PDM) Sale
Central Government Facilitates Potash Derived from Molasses (PDM) Sale. The Central Government has taken a significant step in facilitating the sale of Potassium Derived from Molasses (PDM) by fixing a mutually agreed price of ₹4263/MT for the current year. This move aims to bolster the fertilizer industry and promote self-reliance in fertilizer production.
Central Government Facilitates Potash Derived from Molasses (PDM) Sale
Subsidy Offered for PDM Manufacturers
- In addition to the fixed price, PDM manufacturers can claim a subsidy of Rs. 345 per ton under the Nutrients Based Subsidy Scheme (NBS) of the Department of Fertilizers.
- This subsidy further incentivizes the production and sale of PDM, benefitting both manufacturers and farmers.
Long-Term Sale Agreements in Discussion
- Currently, sugar mills and fertilizer companies are in discussions to establish long-term sale/purchase agreements for PDM.
- These agreements will provide stability and assurance to both parties, fostering a sustainable partnership in the fertilizer supply chain.
Understanding Potassium Derived from Molasses (PDM)
- PDM is a potassium-rich fertilizer derived from ash in molasses-based distilleries, a by-product of the sugar-based ethanol industry.
- It is produced by processing potash-rich ash generated from burning spent wash in Incineration Boilers (IB) to achieve Zero Liquid Discharge (ZLD).
Domestic Production to Reduce Import Dependency
Traditionally, India imports potash fertilizer in the form of Muriate of Potash (MoP). However, with the domestic production of PDM, the country can significantly reduce its import dependency in the fertilizer sector. This move aligns with the government’s vision of promoting self-reliance and supporting domestic industries.
Revenue Stream for Sugar Mills
- The manufacturing and sale of PDM offer an additional revenue stream for sugar mills, diversifying their income sources and ensuring timely payments to farmers.
- This initiative not only benefits the fertilizer industry but also supports the agricultural sector by strengthening the financial viability of sugar mills.
Potential for Expansion
- Ethanol distilleries sell about 5 Lakh Metric Tons (LMT) of Potash Ash domestically. However, there is a potential to increase production to 10-12 LMT.
- Further enhancing India’s self-reliance in fertilizer production and reducing reliance on imports.
Conclusion
The Central Government’s facilitation of PDM sales at a mutually agreed price and subsidy support reflects its commitment to promoting self-reliance and sustainability in the fertilizer sector. By encouraging domestic production and reducing import dependency, the government aims to foster economic growth and ensure food security for the nation.
