Fertiliser body declares potash import ‘holiday'

In an apparent attempt to talk down world prices, the Fertiliser Association of India has declared a potash import ‘holiday', claiming that “the country has enough stocks for the ensuing kharif season”.

In a statement issued here on Monday, the association's Director-General, Mr Satish Chander, noted that India imported 6.4 million tonnes (mt) of muriate of potash (MOP) in 2010-11.

Imports

Besides, it imported 1.2 mt of NPK complexes, which also contain potash, along with nitrogen and phosphorous. All this has resulted in “good closing stocks” of potash with distribution channels.

Moreover, in view of high application of potash during the recent years — which have seen MOP imports grow from a mere 2.3 mt in 2003-04 — the availability of this nutrient in the soil has improved considerably.

Taking in view all these factors plus the “unreasonable and exorbitant international prices of potash as a result of cartelisation of suppliers”, the Indian fertiliser industry has decided “to take a holiday (from imports) for the present”, the statement added.

'temporary phase'

For 2010-11, Indian companies had jointly negotiated a price of $370 a tonne, cost and freight, for MOP sourced from Canada's Canpotex, Israel's ICL and the Belarusian Potash Company.

This time around, these global suppliers are quoting a price of around $520 a tonne.

They are said to taking advantage of a surge in demand from Brazil and Australia, which have had good rains and grow sugarcane that requires lot of potash.

“Our feeling is that this is a temporary phase of buying. After May, the demand from the western hemisphere will recede and the suppliers will have to agree to more reasonable prices,” an industry source pointed out.

Unlike urea and to an extent di-ammonium phosphate, India does not produce any MOP and meets its entire potash requirements through imports.

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