Thursday 13 September 2012

India's potash imports to be about 4 MT this yr

Press Trust of India / New Delhi Sep 12, 2012
World's second largest potash producer Uralkali has pegged India's potash imports at 3.5 - 4 million tonne (MT) in 2012 due to cut in subsidy on phosphatic and potassic (P&K) fertilisers by the government.

India imports 100% of its domestic requirement of muriate of potash (MoP), a key fertiliser.

"We expect that the decreased state subsidies for potash imports will reduce this year's potash imports down to 3.5 - 4 million tonne as well as limit the room for a possible price increase," Russia-based Uralkali said in a statement.

It, however, did not state its estimates of India's 2011 imports.

The government has slashed subsidy on MoP to Rs 14,440 per tonne for the 2012-13 fiscal, from Rs 16,054 per tonne in the 2011-12 fiscal.

However, the company expects the current low potash application and high crop prices to boost consumption of the soil nutrient by India in 2013 and help improve the market sentiment.

On the sale of potash in India, the company said that high retail prices of the crop nutrient and below average monsoon affected sales.

"In India, high potash retail prices and below-average monsoon rains caused weak consumption despite good loading volumes during Q2 and Q3," it said.

The company released its half yearly results, with net profits up by 6% to $842 million in the January-June period of 2012, from $794 million in the same period of 2011.

The revenues of the company rose by 13% to $2.23 billion from $1.97 billion in the reviewed period, it added.

During the first 6 months of the current calender year, Uralkali produced 4.8 million tonne of potash as against 5.2 million tonne in the same period of 2011.

The global potash supplier, whose assets include 5 mines and 7 ore treatment mills, added that shipments to India by Belarusian Potash Company (BPC), Uralkali's trader, under old contracts continued through August this year.

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