Indian Potash Imports to Rise to 5 Million Tonnes in 2015 Financial Year

Mining Weekly reported that Indian potash imports are set to increase to a four-year high of about five million tonnes in the 2015 financial year, which began on April 1.

As quoted in the market news:

This will be the highest level of imports since 2011, when India went into a self-imposed “potash import holiday”.With the Indian rupee stabilising and the rise in domestic potash prices checked, farmers’ consumption of the nutrient was seen to be on an upward curve, resulting in the likelihood of higher imports during the current year, an official in the Department of Fertilizers said.

However, importers are expected to conclude transactions at a maximum of $322 per tonne on a cost-and-freight basis. Government-owned trading houses MMTC Limited, STC Limited, and India Potash Limited were designated authorised potash importers. The government subsidised the retail price of potash through part reimbursements to potassic fertiliser manufacturers. However, for 2014/15 the government cut the subsidy by 20 percent to a maximum of $151 per tonne resulting in a rise in retail price and a drop in consumption during the year.

Click here to read the full Mining Weekly report.