RCF-led group in talks with Canadian company for Potash supply

NEW DELHI: A consortium of fertiliser companies, led by state-owned Rashtirya Chemical and Fertilisers, is planning to enter into a longterm agreement with Canadian potash developer Encanto Potash for firming up supplies of muriate of potash (MOP).

“RCF will be hiring a consultant for price negotiations for the long-term nutrient supply arrangement,” said a fertiliser ministry official.

The Canadian company has offered to supply 2 million tonne MOP per annum on a long-term basis with 8% discount over ruling market price, which is around $500 a tonne. India imports 6.5 million tonne every year to meet its requirements. The country sources the nutrient from Canada, Belarus and Russian Federation. Meanwhile, a delegation of fertiliser ministry officials, led by secretary Sudhir Mittal, is touring Russia and Belarus to facilitate nutrient supply for the next season. “The delegation is also exploring investment opportunities besides tying up the supply. So far, nothing concrete has come up,” said an official.