Sugar mills to sell potassium from molasses at Rs 4,263 per tonne: Govt

Sugar mills will sell potassium derived from molasses, called PDM, at Rs 4,263 per tonne to fertiliser companies in the current year, Food Secretary Sanjeev Chopra said on Thursday.

The mutually agreed rate was facilitated by the food and fertiliser ministries, he said.

PDM, a potassium-rich fertilizer derived from ash in molasses-based distilleries, is a by-product of the sugar-based ethanol industry.

Briefing the media, the Secretary said, "India depends on imports for potash. This will augment potash availability in the country. This is a win-win for all stakeholders."

This decision was pending for a long time due to the lack of understanding between fertiliser companies and sugar mills. Finally, they have come to an agreement on the price, he said.

The Secretary further noted that PDM manufacturers can also claim a subsidy at Rs 345 per tonne under the Nutrients-Based Subsidy Scheme (NBS) of the Department of Fertilizers.

Now, both sugar mills and fertilizer companies are discussing modalities to enter into long-term sale/purchase agreement on PDM.

Presently about 5 lakh tonnes of Potash ash generated from ethanol distilleries is being sold domestically, whereas the potential to produce this ash could reach up to 10-12 lakh tonnes, an official statement said.

Manufacturing and sale of PDM is going to be another revenue stream for sugar mills to add to their cash flows and also to make payment to farmers in a timely manner. It is another initiative of the central government to reduce import dependence in the fertilizer sector, it added.

Explaining further, the Food Department said the distilleries produce a waste chemical called Spent Wash during production of ethanol which is burnt in Incineration Boiler (IB) generating ash to achieve a Zero Liquid Discharge (ZLD).

The potash-rich ash can be processed to produce PDM having 14.5 per cent potash content and can be used by farmers in the field as an alternative to MoP (Muriate of Potash with 60 per cent potash content), it said in a statement.

Currently, potash as a fertilizer is imported in the form of MoP.