Low international potash import offer sparks flurry in Indian buying
KOLKATA (miningweekly.com) - Indian potash imports are poised for a significant boost in 2014 as the sector saw a flurry of activity to clinch contracts at sharply reduced prices ranging between $320/t to $325/t, which was substantially lower than the $427/t mark recorded last year.
According to officials in India’s Department of Fertiliser, the country was expected to import 3.5-million tonnes of potash during 2014/15 and domestic fertiliser producers were expecting substantial savings from lower potash offers, largely from Russian Uralkali.
Apart from the sharp fall in potash offers from Uralkali and Belaruskali, of Belarus, following the break-up of the cartel between the two, the potash import bill would be further reduced by the sharp appreciation against the dollar of the Indian rupee.
The Indian currency, which was pegged at around Rs60.59 against the dollar on Monday, had appreciated 3.15% against the greenback during January to March in sharp contrast to last year when the local currency had hit a historic low of Rs68.36 to the dollar.
A press release from producer India Potash said that the company had signed a supply contract with Uralkali for the import of 800 000 t of potash at a rate of $322/t, during the current fiscal period.
Between April 2013 and January 2014, Indian potash imports were about 3.1-million tonnes, of which 2.5-million tonnes was imported at $427/t, while the balance had been contracted at $369/t, the official said.
A government official said that the government was closely tracking potash imports by private fertiliser producers as contracts at a lower price would enable the government to cut government subsidies for potassic fertilisers.
The government incurred about $642-million on muriate of potash in paying a subsidy of around $176/t on the retail price of the fertiliser but it would take some time to reduce the subsidy bill based on lower potash import prices contracted for the full fiscal 2014/15.
The Department of Fertiliser would also take some time to estimate the lower potash subsidy to be offered to producers, as this could be finalised only after the new Indian government assumed charge once the national elections were over in mid-May, the official said.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation