5 Oct 2018 14:20

Moscow, Delhi discussing cancellation of India's 5% import duty on Russian fertilizer - Gorkov

NEW DELHI. Oct 5 (Interfax) - Moscow and New Delhi are discussing cancellation of India's 5% import duty on Russian fertilizer, Deputy Economic Development Minister Sergei Gorkov said during a Russian delegation's visit to New Delhi.

The discussion first and foremost concerns phosphorus-containing fertilizers, whose main Russian supplier to India is PhosAgro .

"We are currently discussing this with the Indian colleagues. Obviously, they are protecting their market. The talks will likely take some time. But yes, we are discussing this issue," Gorkov said.

Cancellation of the import duty will enable PhosAgro to increase exports to India, company head Andrei Guryev said.

On Friday, the Russian Direct Investment Fund (RDIF) and major Indian fertilizer importer Indian Potash signed an agreement under which PhosAgro will supply DAP and NPK to India on a long-term basis: up to 2 million tonnes from 2019 through 2021. The supplies will total an estimated $1 billion based on current prices.

The sides also agreed to examine opportunities for joint implementation of investment projects in the mineral fertilizer production section.

Russia annually exports 1.5 million-1.8 million tonnes of fertilizers to India, accounting for 8% of its fertilizer imports. Phosphorus-containing fertilizer accounts for about one-fifth of the Russian supplies, nearly all of it from PhosAgro.

PhosAgro supplied 700,000 tonnes of fertilizers to India in 2015, 400,000 tonnes in 2016, 300,000 tonnes in 2017 and 450,000 tonnes in 8M 2018.