The Central Government has facilitated a mutually agreed price of Potassium Derived from Molasses (PDM) at 4,263 per tonne for sale by sugar mills to fertilizer companies for the current year. In addition, PDM Manufacturers can also claim subsidies at 345 rupees per ton at present rates under the Nutrients Based Subsidy Scheme (NBS). Now, both, sugar mills and fertilizer companies are discussing modalities to enter into long-term sale and purchase agreements on PDM. 

Ministry of Consumer Affairs, Food and Public Distribution in a statement said that PDM, a potassium-rich fertilizer derived from ash in molasses-based distilleries is a by-product of sugar sugar-based ethanol industry. Currently, potash as a fertilizer is totally imported. Production of Potassium Derived from Molasses will reduce import dependency and will make India Atmanirbhar in its production. 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 to 12 Lakh tonnes.