November 25, 2011

 

Phosagro to slash prices for Indian purchasers

 

 

Phosagro, a Russian fertiliser group, has decided to give a discount to two key Indian buyers following a sharp fall in the rupee that brought hikes in local prices.

 

Both India Potash Ltd (IPL) and the Indian Farmers Fertiliser Cooperative Ltd (IFFC) will receive the discount, but Phosagro declined to provide any details on volume and pricing when contacted by Reuters.

 

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

 

Industry officials said earlier in Mumbai that they were renegotiating import deals after the local currency lost 14% this year, putting pressure on fertiliser companies.

 

India fulfills its entire requirement of potash through imports while it buys 90% of its phosphate from abroad.

 

"Given our long-term relationship with IPL/ IFFCO, I believe we have found an acceptable solution for all parties," Phosagro chief executive Maxim Volkov said.