IFFCO signed an agreement with Sirius Minerals Plc- a UK based company with the world’s largest and highest grade polyhalite deposit located in North Yorkshire, for supply of POLY4 in India on Wednesday in Montreal. “Without any processing this can be used in agri-fields benefitting Indian farmers hugely”, opine experts.
IFFCO marketing head Yogendra Kumar signed the agreement from IFFCO while J T Starzecki signed it from Sirius Minerals side. The terms of agreement are said to be flexible with the option to fine-tune it according to situation, commented an expert.
It is on a take/supply-or-pay basis and volumes can increase up to 1 Mtpa in year eight of the 11 year term, with the option for an additional 250,000 tonnes by mutual agreement. The pricing is based on nutrient linked formula on a CIF India basis. IFFCO also has a break clause after year eight and there is a 10-year extension option subject to mutual agreement of the two parties.
Calling it a move forward towards PM’s vision of doubling the farmers’ income by 2022, IFFCO Managing Director Dr U S Awasthi said “POLY4 offers a unique opportunity for IFFCO to help deliver our vision of increasing farmer’s incomes by increasing crop productivity and the balanced use of energy efficient fertilizers.”
Awasthi added “The multi-nutrient characteristics of POLY4 are well suited to Indian soils and, having seen the ongoing crop science work and results, I know that this partnership between Sirius and IFFCO will have an important role to play for farmers for many years to come.”
“This is actually in line with IFFCO’s ongoing initiative of balanced nutrition management for soil. A good quality soil will actually help our farmers to increase their yield”, Awasthi concluded.
Foreign media has also held the move in their stories quoting Chris Fraser, Managing Director and CEO of Sirius” “We are delighted to be embarking a long-term partnership with IFFCO, an organisation with a wide reach and a proud history in India and a substantial profile in the global fertilizer market.”
The Agreement provides for a steering committee that will be established to assist both parties in working together to implement the in-country marketing plan for sales of POLY4, including liaising in relation to research and development.
IFFCO is looking forward for its trials on cash crops majorly Orange, Apple, Grapes, Saffron Ginger, Tea & Coffee. The list will include more crops.
Signed on the sidelines of IFA conference in Montreal, the agreement is said to bring the country a step close to the idea of balanced fertilisation with emphasis on micronutrients. “The Poly4 product with four essential macronutrients and micronutrient like Boron will help in addressing the nutrient deficiency of soil and cost to the exchequer. The product is Organic certified in Europe with lower environmental impact”, read a press release from IFFCO, sent by its media head Harshendra Verdhan.