Belarusian Potash Company signs nine-month contract with India for supply of potash at $490 per tonne
MOSCOW. Aug 4 (Interfax) - Belarusian Potash Company (the joint trader of Uralkali and Belaruskali), has signed a contract with Indian Potash Ltd, India's main importer of mineral fertilizers, for the supply of potash between August 2011 and March 2012.
The price for the potash fertilizer supplied to India will come to $490 per tonne under CFR terms. The company will supply 1.2 million tonnes to India according to the contract.
The company signed a contract with Indian consumers in March 2010 for the delivery of potash, which was in effect until March 2011. The contract price came to $370 per tonne.
Uralkali chief Vladislav Baumgertner was quoted as saying that the combined supplies from Belarusian Potash Company and International Potash Company traditionally count for around 45%-50% of the Indian potash market. "We believe that the signing of the contract with the world's biggest potash import will be a key drive for market growth in 2012," he said.
Recently Canpotex, the trader for Agrium, Mosaic and Potash Corp., said that it would sign a contract with Indian consumers for the fourth quarter at $470 per tonne and $530 per tonne for the first quarter of 2012. Total supplies between October 1, 2011 and March 31, 2012 will come to 670,000 tonnes.
Baumgertner also said that India is becoming a benchmark for the world potash market instead of China. He also said that India might receive a proposal for six-month supply of potash this year.
A six-month contract was earlier signed with China at a price of $470 per tonne. Total supply will come to 500,000 tonnes with an option for 200,000 tonnes.