Phosagro to reduce prices of fertilisers for IPL and IFFCO

Russian fertiliser group Phosagro said yesterday that it had agreed to provide a discount to two key Indian buyers following a sharp fall in the rupee which triggered a spurt in local prices.

Both India Potash Ltd and the Indian Farmers Fertiliser Cooperative Ltd would receive the discount, though a Reuters report said Phosagro declined to provide any details on volume and pricing when contacted.

"As part of this agreement, IPL / IFFCO has committed to purchase additional volumes of phosphate fertilizers from Phosagro and has granted the company a seller's option on these volumes," the Russian firm said in the statement.

According to industry officials who interacted with Reuters earlier in Mumbai, they were in the process of renegotiation of import deals after rupee declined 14 per cent this year, putting pressure on fertiliser companies.

Imports account for India's entire requirement of potash buying 90 per cent of its phosphate from abroad.

According to Phosagro chief executive Maxim Volkov, given its long-term relationship with IPL/ IFFCO, the company believed it had found an acceptable solution for all parties.