Fertiliser firm Indian Potash Ltd (IPL) has signed a memorandum of understanding (MoU) with Russian firm Phosagro for supply of phosphate fertiliser over a period of three years.
The deal is valued at Rs 2,700 crore, IPL said.
The company will import about 12 lakh tonnes of phosphate -- which is used as crop nutrient -- over a period of three years subject to the agreement on prices, IPL Managing Director P S Gehlaut told PTI.
India is the world's second-largest consumer of phosphate fertilisers with annual demand of about 80 lakh tonnes and the largest importer of diammonium phosphate (DAP).
"Phosagro is one of the established producers whose quality has never been questioned. The MoU is for supply of 12 lakh tonnes over the period of three years," Gehlaut said.
At present rates pf phosphatic fertilisers the deal can be valued at Rs 2,700 crore.
He added that they have signed an MoU as it is not legally biding.
"No price is agreed or mentioned in the MoU. It will be done on vessel to vessel basis," Gehlaut said.
