The country’s largest fertiliser co-operative, IFFCO, plans to import around 8 lakh tonne of potash during the financial year 2013-14. The company’s import of the fertiliser reached rock-bottom levels in 2012-13 on high global prices and sluggish local demand.
India meets 100% of its domestic requirement of muriate of potash (MoP), a key fertiliser, by way of imports. Last year, the country failed to contract potash as IFFCO, the world’s second-largest importer of the fertiliser, had built sufficient stocks. Besides, Indian buyers and global suppliers had failed to reach a deal due to overheated prices. IFFCO?s import proposal is expected to give direction to the sector?s fertiliser demand for the rest of the year.
?So far this year, we have imported 1.5 lakh tonne of potash at an average price of $427 per tonne. We are likely to import around 7-8 lakh tonne of the fertiliser during the year,? US Awasthi, managing director, IFFCO, told FE.
Potash imports to India were around 4.3 million tonne in the 2011-12 financial year. Belaruskali Potash Company (BPC) was the largest supplier with nearly half the market share. Israel and Canada were also key suppliers in this market, the leading global supplier said.
?The prevailing retail prices of potash and phosphate are around R16,000 per tonne and R22,500 per tonne. Since implementation of the NBS policy, the retail prices of these fertilisers have more than doubled because of an increase in international prices,? Awasthi said. Against high prices prevaling for most of last year, fertiliser price has fallen by almost 15% this year.
On sale of potash in India, IFFCO said that high retail prices of the crop-nutrient and below-average monsoon affected sales last year.
According to the met department, the quantitative seasonal rainfall during the Southwest monsoon months (June-September) is likely to be 98% of the long-period average (LPA) or the average countrywide annual rainfall (89 cm) recorded between 1951 and 2000. This year, the company expects normal rainfall, which will enable it to enter into more potash contracts.
While IFFCO imports potash for its fertiliser and urea plants, Indian Potash supplies the imports to fertiliser companies such as Coromandel International and Tata Chemicals.