Russia's Uralkali signs contract with Indian Potash
Russia's Uralkali, the world's biggest potash producer, has agreed a $10 a tonne price increase for this year's sales to India, a major consumer of the crop nutrient, the company said on Friday.
The new contract with Indian Potash Limited is for the rest of 2015 and the first quarter of 2016, amid continuing supply pressure in a market that has seen more competition between producers since Uralkali broke away from a trading venture with Belarus in 2013.
"This agreement represents a compromise, reflecting the current situation on the global potash market," said Uralkali Chief Executive Dmitry Osipov, adding that the contract would stimulate demand for the crop nutrient.
India, which imports all its potash, was seeking to keep the Uralkali price flat this year, consumers said last month.
Under the previous contract, India was buying potash at $322 a tonne on a cost and freight basis (CFR) -- the lowest level in seven years.
Including optional deliveries, Uralkali will supply up to 800,000 tonnes of potash to Indian buyers under the new contract, the same volume as last year.