The Surveys of the Geological Survey of India (GSI) have also identified reserves in parts of Rajasthan.
Punjab is now the second state after Rajasthan to have the 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.
Two districts of Punjab were located approximately 450 metres below the surface.
Potash refers to potassium-bearing minerals that are primarily used in fertilisers.
Over 90% of potash is used as fertilizer and it is one of the three primary agricultural nutrients in N-P-K.