Israel's ICL to supply 835,000 tonnes potash to India

ICL Fertilizers, a part of Israel-based firm ICL, announced that it has signed several contracts for the supply of an aggregate of 835,000 metric tonnes of potash to its customers in India, including options. The selling price stipulated in the contracts is $10 per tonne above previous contracts and similar to the prices announced recently by other potash manufacturers for sales to the Indian market.
 
Since May 2015, leading global potash suppliers – such as PhosAgro and Uralkali (both from Russia), Jordan’s Arab Potash Company and Canada's Canpotex – have entered into an supply agreement with Indian counterparts which include Indian Potash, Zuari Agro, etc.  

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“The new contracts demonstrate the strong relationships that ICL has developed with its customers in India who elected to wait until the conclusion of ICL’s recent strike to negotiate the contracts with ICL Fertilizers. ICL’s position as one of the world’s main suppliers of potash to India testifies to the success of its strategy which views with importance the strategic, large and growing Indian market,” said ICL in a press release.
 
Nissim Adar, president & CEO, ICL Fertilizers, commented, “The new contracts that we have signed with our customers in India confirm our leading position in the strategic Indian market, whose potential for rapid growth is expected to be a leading driver of worldwide potash demand for years to come as a result of the rise in India’s standard of living, among other factors, which is transforming eating habits and driving the need to provide sufficient quantities of food for a large population that will only continue to grow in the future. These factors are leading to the growing use of fertilisers, and ICL’s supply of a wide variety of fertiliser products can help to increase agricultural output in every area and sector and thereby help to provide India’s large population with sufficient quantities of quality food.”
 
ICL offers advantages over most of its competitors such as open air storage capabilities at Sdom, near the Dead Sea, and low logistics cost (since it can ship potash from the port of Eilat to India quickly), claims the company.
 
In addition, ICL is active in India through its ‘Potash for Life’ farmer training program and promotion of potash consumption. The program, launched in October 2013, is designed to unlock the potential of agriculture in India by promoting balanced fertilisation among India’s farmers to increase agricultural productivity and economic benefits, as well as to contribute to the creation of sustainable food production in India. The program, which includes hundreds of potash demonstration plots, has achieved substantial progress in providing Indian farmers with science-based evidence of the many benefits and improved profitability that derives from using potash fertilisers on over 20 crops that have been tested to date.
 
ICL is a manufacturer of products based on specialty minerals that fulfil humanity’s essential needs primarily in three markets - agriculture, food and engineered materials. The potash and phosphates that it mines and manufactures are used as ingredients in fertilisers and serve as an essential component in the pharmaceutical and food additives industries.