Government Promotes Indigenous Potash Production and Alternative Nutrient Sources to - 28th July 2026 - Ministry of Chemicals and Fertilizers : Department of Fertilizers - Gazette Notification PDF
Issued by Ministry of Chemicals and Fertilizers : Department of Fertilizers
Read or download the official PDF of this gazette notification issued by the Ministry of Chemicals and Fertilizers : Department of Fertilizers on 28th July 2026. Classified under Press Release.
Executive Summary & Key Takeaways
Executive Summary The Government of India is implementing strategies to reduce dependence on imported potash fertilizers by promoting indigenous production and sustainable alternatives. Key initiatives include providing a subsidy of Rs. 345 per tonne for Potassium Derived from Molasses (PDM) for the Kharif 2026 season and intensifying domestic exploration in Rajasthan and Punjab. These efforts are supported by the development of potash biofertilizers and the establishment of a Joint Working Group for price monitoring.
Key Points / Main Content
Potassium Derived from Molasses (PDM)
- Incentivization: PDM is recognized as a sustainable, eco-friendly alternative to Muriate of Potash (MOP) and was included under the Nutrient Based Subsidy (NBS) Scheme on October 13, 2021.
- Subsidy and Pricing: A subsidy of Rs. 345 per tonne has been fixed for the Kharif 2026 season.
- Monitoring: A Joint Working Group (JWG), including representatives from the government, fertilizer companies, and the sugar industry (ISMA), has been formed to monitor PDM pricing.
- Composition: PDM is a sugar industry by-product containing a minimum of 14.5% potash.
Domestic Exploration Initiatives
- National Critical Mineral Mission (NCMM): Since the mission's launch in 2024-25, the Geological Survey of India (GSI) has intensified potash exploration in alignment with national objectives.
- Project Locations: Exploration is concentrated in Rajasthan and Punjab, with eight projects initiated in 2024-25 and six additional projects taken up in 2026-27.
- Established Resources: Under the MMDR Amendment Act 2015, GSI has identified a total potash resource of 456.52 million tonnes across various grades.
Scientific and Technological Interventions
- Biofertilizer Development: The Indian Council for Agricultural Research (ICAR) has identified specific potassium-solubilizing microorganisms (Frateuria aurantia, Serratia liquefaciens, and Bacillus sp).
- Function: These biofertilizers are being promoted to improve the availability of native soil potassium, further reducing reliance on imports.
Impact Analysis
Farmers Impact: Farmers gain access to cost-effective, eco-friendly alternatives to conventional Muriate of Potash (MOP), supported by government subsidies. Action Required: Adopt the use of PDM and ICAR-developed biofertilizers in field applications to enhance soil potassium availability.
Sugar and Bio-Energy Manufacturers (ISMA) Impact: The sugar industry benefits from the commercialization and subsidization of PDM, a previously secondary by-product. Action Required: Collaborate with the Joint Working Group to ensure the manufacturing, availability, and fair pricing of PDM.
Geological Survey of India (GSI) Impact: Increased mandate and resource allocation for potash exploration under the National Critical Mineral Mission. Action Required: Execute and complete the 14 identified exploration projects in Rajasthan and Punjab to tap into the 456.52 million tonnes of established resources.
Fertilizer Companies Impact: Shift in market focus toward indigenous nutrient sources and bio-based alternatives. Action Required: Engage with the Joint Working Group to coordinate the distribution and pricing of alternative potash sources.