Russia-based Phosagro, the world's second largest producers of phosphate fertilisers, is bearish about its sale of fertiliser to India, according to a Bloomberg report. In fact, in July 2013, it was reported that Phosagro was not in favour of renewing a contract to supply India, the world's largest phosphate consumer, as it offered too low a price.
Phosagro reportedly supplied around 4,00,000 tonnes of dimmonium phosphate (DAP) to India under its contract in 2012, and accounted for Rubles 7.5 billion ($230 million) in revenue for Phosagro, down from Rubles 12 billion in 2011.
Phosagro, which has the flexibility to switch to higher value products used outside India, aims to redirect volumes to markets such as Russia, Southeast Asia, Latin America, Africa and Europe.
“Even if India renews fertiliser purchases this year, I think I will sell zero tonnes to the country. We prefer Europe, Brazil, Vietnam, Malaysia, the CIS and Russia more,” said Andrey Guryev, CEO, Phosagro, in the news report.
Phosagro reportedly supplied around 4,00,000 tonnes of dimmonium phosphate (DAP) to India under its contract in 2012, and accounted for Rubles 7.5 billion ($230 million) in revenue for Phosagro, down from Rubles 12 billion in 2011.
Phosagro, which has the flexibility to switch to higher value products used outside India, aims to redirect volumes to markets such as Russia, Southeast Asia, Latin America, Africa and Europe.
“Even if India renews fertiliser purchases this year, I think I will sell zero tonnes to the country. We prefer Europe, Brazil, Vietnam, Malaysia, the CIS and Russia more,” said Andrey Guryev, CEO, Phosagro, in the news report.