BPC sets high fresh price of $535/tonne for potash supply in SE Asia

NEW DELHI: Belarus Potash Co. or BPC, the marketing armm for Uralkali and Belaruskali, has set a high fresh price of $535/tonne for potash supply in S E Asia. The new price, which is a good $45/tonne over the price at which Indian companies including Iffco (Indian Farmers' Fertiliser Cooperative), Zuari Industries, Tata Chemicals and Coromandel International clinched longer term supplies recently to break a self imposed two year import holiday, spells a big saving for India.

In 2010-11, India imported 6.6mt mt of potash. Howver, import deals stuck over Indian industry demand for a price of $420/tonne but suppliers refused to come down from $500/tonne. Whatever the buying price, the government would pay subsidy of only Rs 16.054/tonne ($360.4) on MoP or muriate of potash, a key nutrient. Farmers, experts say, would have to foot the difference between the subsidy and the contract price.

Agencies quoted a statement of BPC which said." Following the settlements in India and delivery commitments in China, BPC is fully sold for Q3, so this price will apply from October shipments."

Earlier, experts had projected than Canpotex, the North American marketing arm of Agrium Inc, Mosaic Co. and Potash Corp of Saskatchewan, could expect higher than $535/tonne in the latter half of the year. Earlier this month, Zuari Industries clinched 400,000 tonnes of import at $490/tonne. Prior to that, Tata Chemicals and Coromandel International also clinched a two phased import deal at an average price of $490/tonne. The best long term import contract was however clinched by Iffco (Indian farmers fertiliser cooperative).