India's muriate of potash (MoP) fertilizers import could reduce 5-7 per cent in the current fiscal due to firm global prices and cut in government subsidy, leading importer IPL said today.
Almost the entire demand for potash in India is met through imports.
Indian Potash Ltd (IPL) is the largest importer of MoP. In 2016-17, it imported 4 million tonnes from countries like Belarus, Russia and Canada.
"Potash imports are expected to be lower by 5-7 per cent. Last year, global potash prices were down, but this year it has increased slightly," IPL Managing Director P S Gahlaut said.
Also, it needs to be seen if there would be an impact on demand after the rollout of Goods and Services Tax from July 1 as the retail prices of MoP are definitely going to come under pressure, he said.
The government has reduced the subsidy on MoP to Rs 7,437 per tonne for the 2017-18 fiscal, from Rs 9,282 in 2016-17.
Presently, MoP is being sold at Rs 11,000 per tonne. The rate was reduced by Rs 5,000 per tonne in July 2016 taking into account the sluggish global market.
Disclaimer: No Business Standard Journalist was involved in creation of this content
