By: Ajoy K Das
3rd September 2012
KOLKATA (Mining Weekly) - Some leading global potash miners have agreed to start negotiations to offer discounts on potash exports to India, after the Asian major hardened its stance on extending the current ‘import holiday’.
“India being among the largest importer of potash, its staying out of the global market has definitely impacted suppliers. The Indian government’s hardening of stance to continue to stay out of the international market for more time may have prompted global potash miners to offer coming back to negotiations on prices,” said an official in India’s Chemical and Fertiliser Ministry.
“Russian potash miner, Urakali and Belaruskali, Belarus have communicated to Indian potash importers to start price negotiations and their willingness to offer discounts on their export offer price,” the official said.
“We can be flexible on prices to Indian farmers but this flexibility was limited by our policy to have balanced pricing across all our markets,” an executive of Belaruskali has been quoted in the local Indian media.
“Indian potassic fertiliser consumption was down 23% this year on high prices being replaced by cheaper urea. Hence there is no urgency in import of potash. The welcome sign was that India importers’ demand of price reductions of 15% to 20% on spot price of $500/t was at least being heard now,” the Ministry official said.
In view of the fall in demand for potassic fertiliser, the Indian government last month decided to continue with the ‘potash import holiday’ beyond September 2012, unless there was a downward price correction by potash miners or producer of finished fertiliser.
Companies authorised by the Indian government to import potash, had negotiated for October-December shipments at $470/t and January-February shipments at $ 520/t. However, no orders have been booked since the weakening of the rupee rendered imports at such prices unviable to farmers.
Ministry officials have suggested that global potash suppliers should benchmark the Indian offer to the China offer, as opposed to the Japan offer, since that country only imported small volumes. However, both Chinese and Indian import volumes were estimated at around five-million to six-million tons a year.
Potash miners have been unwilling to change the base benchmark pricing, but have started talks on discounts, which too could be a starting point, he added.
Meanwhile, an Indian consumer advocacy organisation has filed a complaint against seven global potash companies before the Competition Commission of India (CCI) seeking investigations into price cartelisation and initiate action on relevant laws that empowered the Commission take action against acts outside India territory that has adverse impact on price competition in the domestic market.
Edited by: Esmarie Swanepoel
3rd September 2012
KOLKATA (Mining Weekly) - Some leading global potash miners have agreed to start negotiations to offer discounts on potash exports to India, after the Asian major hardened its stance on extending the current ‘import holiday’.
“India being among the largest importer of potash, its staying out of the global market has definitely impacted suppliers. The Indian government’s hardening of stance to continue to stay out of the international market for more time may have prompted global potash miners to offer coming back to negotiations on prices,” said an official in India’s Chemical and Fertiliser Ministry.
“Russian potash miner, Urakali and Belaruskali, Belarus have communicated to Indian potash importers to start price negotiations and their willingness to offer discounts on their export offer price,” the official said.
“We can be flexible on prices to Indian farmers but this flexibility was limited by our policy to have balanced pricing across all our markets,” an executive of Belaruskali has been quoted in the local Indian media.
“Indian potassic fertiliser consumption was down 23% this year on high prices being replaced by cheaper urea. Hence there is no urgency in import of potash. The welcome sign was that India importers’ demand of price reductions of 15% to 20% on spot price of $500/t was at least being heard now,” the Ministry official said.
In view of the fall in demand for potassic fertiliser, the Indian government last month decided to continue with the ‘potash import holiday’ beyond September 2012, unless there was a downward price correction by potash miners or producer of finished fertiliser.
Companies authorised by the Indian government to import potash, had negotiated for October-December shipments at $470/t and January-February shipments at $ 520/t. However, no orders have been booked since the weakening of the rupee rendered imports at such prices unviable to farmers.
Ministry officials have suggested that global potash suppliers should benchmark the Indian offer to the China offer, as opposed to the Japan offer, since that country only imported small volumes. However, both Chinese and Indian import volumes were estimated at around five-million to six-million tons a year.
Potash miners have been unwilling to change the base benchmark pricing, but have started talks on discounts, which too could be a starting point, he added.
Meanwhile, an Indian consumer advocacy organisation has filed a complaint against seven global potash companies before the Competition Commission of India (CCI) seeking investigations into price cartelisation and initiate action on relevant laws that empowered the Commission take action against acts outside India territory that has adverse impact on price competition in the domestic market.
Edited by: Esmarie Swanepoel
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