Amid media reports earlier today quoting Belarus President Alexander Lukashenko as saying Belarus had signed a new potash supply deal with India, Belarus Potash Co. (BPC) said it is still completing work on the supply contract but expects to sign it by the end of this month.
“We have reached significant progress in the negotiation process with India, which allows us to expect the signing of the contract in June,” a spokesperson for BPC told Green Markets.
It has been widely expected that India would settle a contract before China this year, given the more favorable market conditions there. Historically, potash contracts with China have been concluded first, setting a price benchmark for other markets.
President Lukashenko also is reported to have said at an event in Minsk, that Belarus is considering cooperating with Russian potash producer Uralkali. Uralkali declined to comment. The Russian potash company in late July 2013 stopped its potash export sales through the two countries’ long-standing joint export marketing venture BPC, opting to market all its export volumes through Uralkali Trading. The Russian potash producer’s decision followed the issue of a decree by the Belarusian president in December 2012 which cancelled the exclusive right of BPC to export Belarusian potash, after which Belaruskali made a number of potash deliveries outside BPC.