Reuters reported that the world’s largest potash producer Uralkali (LSE:URALL)  has agreed to a less than planned $10 per tonne increase in sales to China this year.

As quoted in the market news:

The potash market came under pressure as competition between producers strengthened sharply after Uralkali broke away from a trading venture with Belarus in 2013.

Uralkali agreed to supply 850,000 tonnes of potash at $315 per tonne on a cost and freight (CFR) basis in 2015, the company said in a statement, equal to the price agreed by Belarus with China in March.

The contract agreed by Belarussian Potash Co has set a benchmark for other producers despite being criticised by Uralkali as it had been negotiating an increase of $30 per tonne.

Uralkali’s main rival Canpotex Ltd, the offshore potash sales arm of North America’s Potash Corp of Saskatchewan (TSX:POT,NYSE:POT), Mosaic Company (NYSE:MOS) and Agrium Inc (TSX:AGU,NYSE:AGU), signed a contract with China in late March, but did not release price terms.

Click here to read the full Reuters report.