The Iffco-Legend JV will see Iffco sourcing about 3 million tonne of
concentrated rock phosphate annually from Lady Annie project in Queensland, Australia.
Commenting on the JV, U S Awasthi, managing director, Iffco said that the new contract will ensure adequate supply of quality raw material for
phosphate fertiliser production. "India is currently facing shortage of
phosphate fertilisers, which is causing anxiety among Indian farmers. The
prices of phosphate fertilisers including its raw material have gone up many
folds in last one year due to supply constraints and other factors like
increased use of bio fuels in different countries. The supply from Legend
will ensure that Iffco's Paradeep unit will operate at its full capacity
without any raw material constraints", Awasthi said.
Awasthi added that supplies coming from Legend within next 2-3 years will not affect the present suppliers. The finer details of the JV including the price of phosphate rock are being worked out. "The price of the rock will be negotiated on a fair and equitable basis for both companies based on
international market prices applicable for the Indian market with an
appropriate discount", an Iffco release said.
