Canpotex sells potash to India at 7-year low price
Saskatoon-based Canpotex announced Friday an annual contract with India to supply approximately 1 million tonnes of potash at a price of $322 per tonne.
Canpotex is the sales and distribution arm of North American fertilizer giants Potashcorp (TSE:POT), Agrium (NYSE:AGU) and Mosaic (NYSE:MOS) which together control a large chunk of the 55 million tonne global potash market.
$322 per tonne including freight and insurance is the lowest negotiated price in seven years and follows Russian potash miner Uralkali's (MCX:URKA) deal earlier this week signed at the same level.
The price for the soil nutrient is 25% below the levels reached last year before Uralkali exited a supply and joint sales agreement with Belaruskali and announced a move to a market-price and volume-based model.
In January, Uralkali signed a first-half deal with a Chinese agro-chemical consortium to sell 700,000 metric tons at $305 per tonne.
Steven Dechka, Canpotex's president and CEO, also said the distribution and marketing organization intends to expand its market development programs in India "to help provide Indian farmers with the educational and other tools needed to improve yields through balanced fertilization and best management practices."