India signs another potash deal with Israel Chemicals at $490 per ton
12 Aug 2011
India signed another potash deal yesterday with Israel Chemicals for 415,000 tons of potash at $490 per ton after Indian fertiliser companies broke a three-month supply and pricing deadlock with the potash cartels last week.
Tel Aviv-based Israel Chemicals has signed additional agreements with Indian potash companies to supply an additional 415,000 tons of potash including an optional quantity of 25,000 tons.
This is in addition to the 1.1 million tons bought earlier this week, bringing the total potash to be supplied to Indian potash companies to approximately 1.5 million tons.
The contract price is of $490 per ton, or $120 per ton higher than the price prevailing in previous agreements with Israel Chemicals.
The supply period is for eight months beginning in August 2011 and ending on 31 March 2012.
The price is in line with last week's agreements signed between Indian Potash Ltd, Tata Chemicals, Coromandel International, Zuari Industries and Indian Farmers Fertiliser Cooperative with Russian cartel Belarusian Potash Co and Canpotex, the North American potash cartel. (See: Indian fertiliser companies finally sign annual potash supply deals with cartels)