India Secures 44 Percent Output from Canadian Potash Project to Boost Fertiliser Supplies

India's Fertiliser Supply Diversification Efforts

Key Highlights

• India is in talks to secure 44% of the output from a Canadian potash project, valued at approximately 275,000 tonnes of potash per year.
• The Wynyard potash project, a partnership between Karnalyte Resources Inc and Gujarat State Fertilizers, aims to diversify fertiliser supplies and reduce reliance on volatile global markets.
• Gujarat State Fertilizers holds a 47.73% stake in the project, having invested $49.68 million in 2013.

Supply Chain Security

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• India imports 31.52 lakh metric tonnes of muriate of potash (MOP) from Canada between FY22 and December 2025, accounting for 25.53% of its total MOP imports.
• Securing a substantial share of output from the Canadian project would help India stabilise supplies of MOP, reducing reliance on global markets.

Domestic Fertiliser Production

• India produces most of its urea domestically, but relies significantly on imports for potash and phosphatic fertilisers.
• The government has announced an additional Rs 19,000 crore in fertiliser subsidy to support fertiliser availability during the current fiscal year.
• As of March 13, Union Chemicals and Fertilisers Minister Jagat Prakash Nadda reported no shortage of fertilisers across states, with adequate availability of urea, DAP, and other fertilisers.

Market Trends

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• The ongoing Iran war has pushed up global fertiliser and energy prices, raising concerns about supply disruptions and higher subsidy costs for importing countries like India.
• Karnalyte Resources has sought higher investment commitments from the Indian side, delaying negotiations to operationalise the project.