Potash rally may prod India to cut imports
India would be buying less potash after a run-up in prices, according to the country's largest importer of the fertiliser, a move that may undercut expectations for global demand to hit a record this year.
Purchases in the fiscal year starting April may drop from about 5.5 million tonne the year before, said P.S. Gahlaut, manging director of Indian Potash Ltd, which accounts for almost 50 per cent of the country's imports. He declined to give a forecast, but said demand will weaken as India still has a sizeable stockpile.
"In India, consumption of potash is very price sensitive," Gahlaut said in an interview. "Whenever prices have gone up, there's an immediate effect on consumption."
Potash is a nutrient that helps plants withstand drought and diseases. Prices have risen amid a surge in agricultural commodities to multi-year highs as this implies farmers will be planting more acres and using more fertiliser. Bloomberg's Green Markets sees global potash demand at a record
K+S AG, Uralkali PJSC and Canpotex Ltd as these companies may have to lower prices for new deals. India is the fourthbiggest user of potash.
India and China recently signed potash contract deals with Belarusian Potash Co at $247 a tonne. Although that's above
2020 prices, it caused a stir among some producers expecting even higher prices. Nutrien Ltd, the world's biggest fertiliser company, is selling potash in the US corn belt for about $350 a ton, while prices in Brazil rose $50 this year.
Stockpiles companies
of and
Indian traders still total more than 1 million tonnes, said Gahlaut. The proposed 11 per cent cut in subsidies for imported phosphatic fertilisers and potash will further dent demand and hurt the government's push for balanced use of fertilisers.
Gahlaut said India's potash consumption is already lower than what is required under the policy. The country promotes balanced fertiliser use to improve crop yields, boost profitability for farmers and reduce subsidy burden. Currently there's an excessive use of urea given the higher financial support.
HYDERABAD, FEB. 22
B. Manohar, five-time State champion and No.7 among world veterans, continued his winning run to emerge victorious in the 40+ category of the 4th Telangana Master Games — Table Tennis Event conducted at MLRIT in Dundigal near Hyderabad.
Manohar from Oriental Insurance silenced Shayamal 30 — 11-9, 11-6, 11-6 to stamp his authority in the final. He is now eyeing the World Masters to be held in Japan next year. Vishal Reddy won the 30+ singles category by blanking Vishwal Jaiswal 3-1 — 11- 9, 6-11, 11-7, 11-8 while Hemanth took the 50+ singles title with a 3-0 — 11-6, 11-8,
11-6 win over Suresh in the summit clash.
In the 60+ singles, N. Thair beat Natraj Sharma 3-1 — 1210, 3-11, 13-11, 11-9 and S. Ramesh took the 70+ title by defeating Jagannath 3-1 — 11-9, 4-11, 11-8, 11-2.