Potash Recovery Can Strengthen India’s Fertilizer Security

Pune | SugarToday

India can cut its heavy reliance on imported potash and create a new revenue stream for sugar mills at the same time, if distilleries scale up potash recovery from spent wash and boiler ash. That was the central message from Shri Sangeet Singla, Former Joint Secretary, Department of Food and Public Distribution, during his policy address at the Indian Federation of Green Energy National Webinar on Potash Recovery from Distillery Fly Ash: Technology, Sustainability and Scale, held on 03 July 2026.

Speaking to participants from sugar cooperatives, distilleries, research institutes and government, Shri Singla framed potash recovery as both a strategic and economic opportunity. He linked it directly to fertilizer security, import substitution, circular economy goals and the Atmanirbhar Bharat vision.

The Import Challenge
Shri Singla opened with the core problem. Potash is a critical nutrient for Indian agriculture. It supports root development, improves water retention, helps crops handle stress, and raises yields. Yet India has very limited natural potash reserves and depends largely on imports from countries like Russia, Belarus, Canada etc.

That dependence creates vulnerability. Global price swings, shipping disruptions, geopolitical tensions and a higher forex outgo which put pressure on farmers and the government. Reducing this import burden, he said, should be treated as a national priority.

Waste to Wealth from Sugar and Ethanol
The sugar and ethanol sector already generates the feedstock needed for this purpose. Distillery spent wash, incineration boiler ash and other molasses-based by-products contain significant potassium. Instead of treating them only as waste to be managed, Shri Singla said, mills can recover potash from them and turn an environmental liability into a commercial asset.

He highlighted Potash Derived from Molasses, PDM, as the most immediate product. India’s current PDM output is around 5 lakh metric tonnes per year. The technical potential, he noted, is 10 to 12 lakh metric tonnes annually. That gap shows how much capacity remains unused.

For sugar mills and distilleries, the benefits are direct. Potash recovery adds a new revenue line, improves overall plant profitability, makes waste management more economical, and raises resource efficiency. In a sector that often faces sugar price volatility and tight margins, such value-added streams can improve financial stability.

Quality and Trust Are the Bottlenecks
Shri Singla was clear that scale will not happen without fixing quality issues. Right now, potash content in PDM sold in the market is inconsistent. Some batches test at 14.5 percent, others at 18 to 20 percent, and some fall below usable levels. The variation comes from differences in molasses quality, distillery processes and recovery efficiency.

He also flagged adulteration. In parts of the open market, materials like marble powder or other fillers are mixed in to increase weight or improve appearance. That reduces effectiveness, erodes farmer trust, distorts prices and damages the reputation of the entire segment.

His recommendation was strong regulatory oversight combined with better quality control at the plant level.

The Case for In-House Granulation
One of the most practical steps, he said, is for distilleries to set up their own granulation units. When mills send crude PDM to third-party processors, quality control becomes weaker and adulteration risk increases. In-house granulation gives mills direct control over particle size, moisture, purity and packaging. It leads to a more consistent product, stronger market credibility and better pricing. Shri Singla called this a game changer for the industry.

Storage and Packaging Also Need Work
PDM is hygroscopic, which means it absorbs moisture quickly. That creates caking, reduces shelf life and complicates storage and transport. To address this, Shri Singla urged focused R and D on moisture management, better drying, improved packaging materials and storage design suited to Indian conditions.

Building the Market
Demand is growing as fertilizer companies look for domestic potash sources. But long-term market growth will depend on three things: consistent product quality, reliable supply, and transparent pricing. Farmers also need awareness about how PDM fits into nutrient management.

Shri Singla called for closer collaboration between sugar mills, fertilizer companies, technology providers and government agencies to build a robust ecosystem for production, certification, distribution and farmer outreach.

A Path to Scale
Looking ahead, he said potash recovery could become one of the most important value-added opportunities for the sugar and ethanol industry. If done at scale, it can deliver import substitution, save foreign exchange, reduce environmental load from spent wash, improve farm outcomes, and make mills more sustainable.

His action list was specific. Accelerate potash recovery across major distilleries, install in-house granulation facilities, standardize product grades, strengthen quality control and testing, eliminate adulteration through traceability and audits, upgrade packaging, and formalize partnerships with fertilizer players.

Closing Note
Shri Singla ended by describing potash recovery as a rare intersection of economic growth, sustainability, import reduction and waste utilization. The technology is no longer experimental. The economics are improving. The policy environment is supportive. What is needed now, he said, is faster implementation and scale.

If the sector moves quickly, potash from distillery by-products can play a transformative role in India’s fertilizer security and in the long-term viability of sugar mills.