Indian Potash to buy 1.2 MT MoP at $490 a tonne

NEW DELHI: Some three months after an industry lobby declared a self-imposed import holiday, Indian companies have struck deals for 1.87 million tonnes of muriate of potash at an average price of less than $500 a tonne.

On Thursday, Indian Potash reached a pact with Belarusian Potash Co, an export marketing venture of Belarus' Belaruskali and Russia's Uralkali, for 1.2 million tonnes of MoP at $490 a tonne. The delivery will be made during August and March on a cost-and-freight (CFR) basis.

A day earlier, potash supplier Canpotex, which controls the 60% of the world market, agreed to sell MoP at $470 a tonne to Coromandel and Tata Chemicals for the second and third quarter of 2011-12 fiscal, and $530 a tonne for the fourth quarter.

The deal was struck after a protracted stand-off with the North American consortium for import of 670,000 tonnes. Canpotex is a tie-up between Canada's Agrium and Potash Corp and the US-based Mosaic.

BPC will aim to deliver an additional 1.3 million tonnes by March-end at the same price as the contract announced earlier on Thursday, agency reports from Moscow said.