India to auction first potash mining blocks in Rajasthan

India plans to start local potash mining in Rajasthan. This initiative aims to reduce the country's dependence on imports for fertilizer production. The government has eased bidding conditions to help attract bidders. This will mark the first time that potash, an important ingredient for fertilizers, will be mined domestically. Currently, India imports all its potash, mainly from Canada, Russia, Turkmenistan, and Israel. Officials say that once the new mines are operational, they will help lower import reliance. The Ministry of Mines is auctioning two potash blocks in Rajasthan: the Jhandawali-Satipura and the Jorkian-Satipura-Khunja blocks. Bids for these blocks are due by May 1. More than 90% of potash is used for fertilizer, which is one of three key nutrients for agriculture. The Indian government has been working to increase the domestic supply of critical minerals, including potash. In the first nine months of the 2024-25 fiscal year, India imported ₹8,054.83 crore worth of potassium chloride, with Russia and Canada as the main suppliers. However, diplomatic tensions with Canada have affected these imports. Potash imports from Canada dropped by nearly 13% from the previous year. Meanwhile, Russia increased its exports of potash to India. In January, the Indian cabinet approved a budget of ₹16,300 crore for the National Critical Mineral Mission. This project aims to attract around ₹18,000 crore in investments for the extraction and processing of minerals.