VISHWANATH KULKARNI, THE HINDU BUSINESS LINE
NEW DELHI, DEC. 5:
Poor offtake in India and China amid excess global supplies has prompted Russian firm Uralkali, the largest miner of potash, to trim its output by half to two million tonnes in the December-March period.
Fertiliser makers in India expect to delay signing their new contracts with global suppliers, such as Uralkali, to next financial year on high stocks.
“Starting from December and during the first quarter, we will work with 50 per cent of capacity because demand will be rather weak,” Urakali’s spokesperson said in a statement. Buyers in India and China had stopped purchases of the crop nutrient in the second half of 2012. Uralkali expects its customers in these countries to contract lower volumes next year, making for a slow start in 2013.
INDIAN CONSUMPTION
In India, the stocks of potash used to produce NP and NPK nutrients are currently estimated at about 8-10 lakh tonnes (lt). “The rabi offtake is down by 50 per cent due to high prices” said P.S. Gehlaut, Managing Director of India Potash Ltd (IPL). Potash prices are at Rs 16,800 a tonne, almost twice that of last year.
At present, the monthly potash consumption is about a lakh tonnes, against two lakh tonnes in corresponding period last year, Gehlaut said. Besides high prices, poor kharif output due to erratic monsoon has hit the purchasing power of farmers, he said.
NO NEW CONTRACTS
The existing stocks in India are expected to last till March and this has forced the buyers to go slow on new contracts. Traditionally, the Indian buyers used to sign new contracts in December for next season.
“There will be no new contracts signed in this financial year,” said Suresh Krishnan, Managing Director, Zuari Agro Chemicals Ltd. However, the earlier contracts are being honoured. Krishnan expects demand for fertilisers to pick up only next season in June.
PRICE OUTLOOK
While Uralkali expects potash prices to remain stable ahead, the Indian fertiliser makers believe prices to come down further from the current level of around $470-490 a tonne.
“We expect potash prices to come down further” said U.S. Awasthi, Managing Director of IFFCO, stating that the stocks position was quite comfortable at present. “Negotiations with global suppliers are expected to commence sometime in next week,” he said.
NEW DELHI, DEC. 5:
Poor offtake in India and China amid excess global supplies has prompted Russian firm Uralkali, the largest miner of potash, to trim its output by half to two million tonnes in the December-March period.
Fertiliser makers in India expect to delay signing their new contracts with global suppliers, such as Uralkali, to next financial year on high stocks.
“Starting from December and during the first quarter, we will work with 50 per cent of capacity because demand will be rather weak,” Urakali’s spokesperson said in a statement. Buyers in India and China had stopped purchases of the crop nutrient in the second half of 2012. Uralkali expects its customers in these countries to contract lower volumes next year, making for a slow start in 2013.
INDIAN CONSUMPTION
In India, the stocks of potash used to produce NP and NPK nutrients are currently estimated at about 8-10 lakh tonnes (lt). “The rabi offtake is down by 50 per cent due to high prices” said P.S. Gehlaut, Managing Director of India Potash Ltd (IPL). Potash prices are at Rs 16,800 a tonne, almost twice that of last year.
At present, the monthly potash consumption is about a lakh tonnes, against two lakh tonnes in corresponding period last year, Gehlaut said. Besides high prices, poor kharif output due to erratic monsoon has hit the purchasing power of farmers, he said.
NO NEW CONTRACTS
The existing stocks in India are expected to last till March and this has forced the buyers to go slow on new contracts. Traditionally, the Indian buyers used to sign new contracts in December for next season.
“There will be no new contracts signed in this financial year,” said Suresh Krishnan, Managing Director, Zuari Agro Chemicals Ltd. However, the earlier contracts are being honoured. Krishnan expects demand for fertilisers to pick up only next season in June.
PRICE OUTLOOK
While Uralkali expects potash prices to remain stable ahead, the Indian fertiliser makers believe prices to come down further from the current level of around $470-490 a tonne.
“We expect potash prices to come down further” said U.S. Awasthi, Managing Director of IFFCO, stating that the stocks position was quite comfortable at present. “Negotiations with global suppliers are expected to commence sometime in next week,” he said.
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