The Mosaic Co. said March 27 that Canpotex Ltd., the export association of Saskatchewan potash producers, has reached an agreement to supply 1.3 million mt of potash to its key Indian customers at $625 /mt CFR. This represents a volume increase of 350,000 mt and a price increase of $355/mt from the prior year contract. Shipments will occur during the period between May 2008 and March 2009. The contract includes credit terms of 180 days.
“In this period of unprecedented demand, we are very pleased to have concluded these negotiations and this purchase demonstrates the importance of a timely settlement to ensure supply of potash for the upcoming planting season. India continues to be an important partner of Canpotex and we highly value our relationship with these strategic customers,” stated Jim Prokopanko, Mosaic’s President and CEO.
Canpotex members include Agrium Inc., The Mosaic Co., and Potash Corp. of Saskatchewan Inc.
Earlier, JSC Belarusian Potash Co (BPC), also reported a similar price increase to Indian Potash Ltd. BPC said the new price was established for shipments from May 2008 until March 2009. BPC’s agreement with IPL is for the shipment of 750,0 mt of MOP. Uralkali’s portion of these deliveries will be determined in accordance with the budget agreed with Belaruskali.