Global potash major Uralkali today said it has signed an agreement with Indian Potash Ltd (IPL) for supplying 8 lakh tonnes of potash at USD 322 per tonne during the 2014-15 fiscal.
"Uralkali has concluded a contract with IPL, the major Indian fertiliser importer, for potash deliveries between April 2014 and March 2015," an official statement said.
As per the agreement, 8 LT of potash would be supplied at USD 322 per tonne on a cost-and-freight basis to IPL in the current year, it said.
Commenting on the development, Uralkali Director of Sales and Marketing Oleg Petrov said: "Today's agreement is a mutually beneficial one. India is a strategic market for Uralkali, and IPL is our long-term partner...We expect that the conclusion of the Indian contract will boost the global potash market growth."
The deal will help stimulate potash application and support India's agriculture at the time of continued population growth and rising food demand, he added.
According to industry experts, the price at which Russia's Uralkali has agreed to sell potash to India is the lowest price in seven years.
Uralkali has a share of about 20 per cent in global potash production. The company owns five mines and seven ore-treatment mills in the towns of Berezniki and Solikamsk of Russia. It employs 11,800 people in the main production unit.
