Uralkali pays 104 mln rubles in premiums to Russian NPK producers in Q4 2011
MOSCOW. March 1 (Interfax) - Uralkali shelled out around 104 million rubles in premiums to Russian complex fertilizer (NPK) producers in the fourth quarter of last year, the company said in a press release.
Premium pay-outs to NPK producers for 2011 as a whole totaled about 752 million rubles.
"The premium mechanism is provided by Uralkali's marketing policy, which was previously approved by the Russian Federal Antimonopoly Service. It allows NPK producers to buy KCL [potash] for the production of fertilizer intended for use in the domestic market on the same favorable terms offered by the company in relation to its direct sales to domestic agricultural producers. The structure is designed to encourage growth of compound fertilizer supplies in the domestic market and support agricultural producers," the press release said.
In the first quarter of this year, potash is being sold at 9,318 rubles per tonne (excluding premiums) for NPK producers. The price of potash for direct supplies to agricultural producers will be around 4,700 rubles per tonne this year.
