Sale of Potash derived from molasses (PDM) to fertiliser farms

Source-This post on Potash derived from molasses (PDM) is based on the article “Sugar mills can now sell potash derived from molasses (PDM) to fertiliser farms” published in “Live mint” on 23rd February 2024.

Why in the News?

The government has allowed sugar mills to sell potash from molasses (PDM) to fertilizer companies. This assists mills in earning additional revenue and qualifying for nutrient-based subsidies.

What decisions have been taken by the Government?

1. Price set for current year-The government has set a price of ₹4,263 per metric tonne for sugar mills to sell PDM to fertilizer companies this year(2024).

2. Subsidy provided– PDM manufacturers can also claim a subsidy of ₹345 per ton under the Nutrient Based Subsidy Scheme (NBS) from the Department of Fertilizers.

3. Significance of this move:
a. Sugar mills sell PDM to fertilizer companies to produce potash fertilizer, which is then sold in the market.
b. The government is working to make India self-sufficient in fertilizers.
c. The goal is to become self-sufficient in urea by 2025. This involves increasing production from 30 million tonnes to 31-31.5 million tonnes and substituting 2.5 million tonnes of demand with alternatives like nano urea and urea gold.

Note- India is the second-highest consumer of fertilisers after China.

What is Potash derived from molasses (PDM)?

1. About– Potash derived from molasses (PDM) is a potassium rich fertilizer that is produced as a by-product of the sugar-based ethanol industry.

2. Derived– It is derived from the ash generated during the distillation process in molasses-based distilleries.

3. Current production in India– At present, India imports all of its required potash (100 %) for fertilizers, which comes in the form of muriate of potash (MOP).

4. Significance:
a. It can be used as a source of potassium fertilizer in agriculture to improve soil fertility and enhance crop yields.
b. Farmers can use PDM (which contains 14.5% potash) as an alternative to MOP, which contains 60% potash.

UPSC Syllabus- Indian Economy (Agriculture)