Uralkali has concluded a contract with Indian Potash Ltd. (IPL), for potash deliveries between April 2014 and March 2015. The contract’s delivery price has been set at US$322/mt CFR. Uralkali’s volumes under the contract will total 800,000 mt.
“Today’s agreement is a mutually beneficial one. India is a strategic market for Uralkali, and IPL is our long-term partner,” said Oleg Petrov, Uralkali director of sales and marketing. “We hope that the contract will help stimulate potash application rates in India, and support the country’s agriculture at the time of continued population growth and rising food demand. We expect that the conclusion of the Indian contract will boost the global potash market growth.”
While the price is much lower price for India than it has paid in recent years, it is still higher than China’s contract of $305/mt CFR, which was achieved early this year. China traditionally pays a lower price than India.