NEW DELHI, 12 September (BelTA) – Belarus and India have agreed to increase the supplies of potash fertilizers, Belarus President Alexander Lukashenko said after the official talks with Indian Prime Minister Narendra Modi on 12 September, BelTA has learned.
The corresponding memorandums of understanding were exchanged in the presence of the leaders of the two countries.
According to Director General of the Belarusian Potash Company Elena Kudryavets, the memorandum outlines the cooperation between the two states in the period from 2018 to 2023 and spells out the amount of potash fertilizers Belarus will supply to IPL, its main potash fertilizer client in India. “The export will be increasing from 2018 to 2023. The memorandum envisages the delivery of more than 4 million tonnes. The document also envisions option volumes. Everything will depend on the situation on the market,” she noted.
Prices will be market-driven. “We have a new price for potash fertilizers on the Indian market every year. It is a contract price which is valid throughout the year. The volumes will depend on the price,” Elena Kudryavets said.
India is a strategic market for the Belarusian Potash Company. “It is a contract market, the same as the Chinese one. China has its potash producers while India has to import this product. For us it is important to maintain a balance in the relations on the market and a balance in supplies. India is an important market for us,” Elena Kudryavets said.
She added that Belarus accounted for over 26% of the Indian potash market in 2016. The current memorandum is valid for five years through 2023. Elena Kudryavets said that the total supplies will make up some 4.5 million tonnes, notwithstanding option volumes.
In her words, the situation on the global market of potash fertilizers is favorable, with the demand surpassing the supply.More about Economy