Belarusian Potash Company (BPC), the joint venture trader of Uralkali and Belaruskali and the world leader in export sales of potash fertilizer, has agreed to a contract with Indian Potash Ltd (IPL) on potash deliveries from February 2013 till January 2014. The new deal will supply IPL with potash for $63 per tonne less than the prior price, agreed upon in 2011. That contract expired early in 2012, but shipments continued.
The deal should help curb the NPK imbalance in India, and the new low price will help reduce the Indian government's fertilizer subsidy. BPC also signed a new Potash contract with China at the same blue-light price agreed upon by Canada's Canpotex earlier this year -- $400 per tonne.
Your Inputs Monitor reported last month that Indian interests had purchased a 20% stake in one Canadian Potash producer, and signed a 20 year offtake deal with another for 8% below market value (click for the story). It would appear India is serious about balancing its nutrient profile by shoring up K connections.
Uralkali is the world's largest potash producer by output, and the new deal may help lower North American K pricing as demand in key Chinese and Indian markets are serviced by BPC Potash and relying less on Canpotex product.