Israel Chemicals Ltd. (ICL) today confirmed it has signed its first agreement for the sale of potash to India for delivery in India’s fiscal year 2016/17, and that additional agreements are expected to be signed in the coming days. Reports were circulating late last week that the Israeli supplier had struck a deal with Indian Potash Ltd., India’s biggest potash importer, for 2016/17 deliveries of potash. The price agreed is believed to be in line with the price of $227/mt CFR with 180 days’ credit reached between Belarusian Potash Company (BPC) and IPL on June 27, but this has yet to be confirmed. The BPC-IPL deal was the first potash contract to be signed for fiscal 2016/17 deliveries; the first contract agreed has in the past set a price benchmark for other major suppliers to India to follow. ICL said it will provide a further update once its total volume to India [for 2016/17 delivery] is agreed upon. The Israeli company contracted to supply about 835,000 mt of potash to Indian buyers, including optional tons, in fiscal 2016/17. Of this total, about 525,000 mt firm was understood to be for IPL.
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