Potash: India
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A backgrounder
As of 2025
Raakhi Jagga, Feb 8, 2025: The Indian Express
“India imports 50 lakh tonnes of potash annually, primarily used in fertilisers and industries.”
Where were potash reserves found?
Punjab is now the second state after Rajasthan to have significant potash reserves. The three mining blocks with potash reserves — Kabarwala (Muktsar Sahib), Sherewala and Ramsara (Fazilka) and Shergarh and Dalmir Khera (Fazilka) — are spread over nearly 18 square kilometres.
In Rajasthan, potash deposits were mainly found in the northwestern Nagaur-Ganganagar basin, including the Ganganagar and Hanumangarh districts that border Fazilka and Muktsar. The GSI carried out extensive explorations between 1974 and 1991, across districts such as Nagaur, Churu and Bikaner.
Later, exploration, beginning in 2017, pointed to deposits in Punjab. However, despite having substantial reserves, exploration and extraction have been delayed. So far, India has not engaged in potash mining. According to the National Mineral Inventory (NMI) database, the total potash resources are estimated at 23,091 million tonnes in 2020. Rajasthan alone contributes 89% to the total resources. After initial explorations, the mines department decided to go for a quality, quantity and commercial feasibility study of minerals at that time to get clarity about the resource and its availability.
Why are potash reserves yet to be mined in Punjab?
In 2019, the GSI discovered potash deposits in two districts of Punjab that were located approximately 450 metres below the surface. The GSI’s reconnaissance survey during 2018-19 in the Satluj basin, part of the Indo-Gangetic alluvial plain, confirmed the presence of potash-bearing zones.
Some farmers from Muktsar and Fazilka believe their land will be acquired for mining reserves and have protested against any mining to be done in the future. In response, the minister said no land acquisition will happen. “Potash will be extracted using an advanced drilling system with zero impact on land ownership. Additionally, the government is conducting a thorough environmental and social impact assessment before starting operations,” Goyal said.
He also pointed to the likely benefits, saying potash mining in Punjab will create new employment opportunities and drive regional economic development. However, farmers have asked for a written assurance regarding their land.
Although the central government has the auctioning rights for minerals, states receive royalties upon their extraction. According to sources, the Kabarwala block has reached the auctioning stage, with the Punjab government approving mining. Once the central government completes the auctioning process, extraction can commence. However, until the farmers are convinced, the project is unlikely to proceed further.
