April 25, 2012

India's fertiliser makers to create body on fixing phosphoric acid prices

In order to check the alleged "unfair trade practices" by global suppliers of phosphoric acid, India's fertiliser makers have come together in establishing a body to fix phosphoric acid prices.

Alleging cartelisation, Fertiliser Association of India (FAI) said that major suppliers of phosphoric acid were resorting to unfair trade practices. In order to curtail this, the FAI has decided to create a purchase group to fix on the price at which they would buy imported phosphoric acid, a key ingredient for phosphate fertilisers such as di-ammonium phosphate. The said body alone will be competent to set the price at which the country should buy phosphoric acid in the interest of maintaining the fair prices for Indian farmers.

The major suppliers of phosphoric acid led by some of the major players are acting in a manner which is prejudicial to the interest of the farming community, as India is one of the largest markets for the global phosphoric acid makers.

Further, FAI has urged all those associated in advisory capacity to the suppliers of phosphoric acid to withdraw from such a role. It has also come to the notice of the industry that some advisory group consisting of Indian nationals are advising the suppliers for keeping the unfair prices.