The managing director of Indian Potash Limited (IPL), P.S. Gahlaut, hailed Russian fertilizer company PhosAgro as one of the most reliable global plants that can guarantee supplies to importers. On Thursday (28 May), PhosAgro announced a three-year deal with IPL involving supplies of 1.5 million tons of fertilizer to India. The shipping will include three different types of the multi-nutrient.
“PhosAgro is one of the few fully integrated phosphatic fertilizer plants… Thus, by signing a deal with such a producer, we are assured of uninterrupted supplies as per our requirement,” Mr Gahlaut said and added that thanks to the control of raw materials maintained by the Russian supplier, “their finished fertilizers do not ever have any quality complaints.” PhosAgro’s CEO, Andrey Guryev, commented that the company renewed its sales to India following an almost two-year interruption after prices had rebounded. Mr Gahlaut explained that it is generally difficult to forecast prices for such a long period but “at current market rates of these products, the deal is worth Rs.3500 crores (about $548 million)”. He moreover stressed the general importance of stable prices for nutrient-based fertilizers.
IPL is India’s biggest fertilizer importer with annual volumes of more than 10 million tons for at least 60 years. PhosAgro is one of the world’s leading producers of phosphate-based fertilizers. Its core line of business is the production of phosphate-based fertilizers, high-grade phosphate rock, and also feed phosphates, nitrogen fertilizers and ammonia. In Europe, the company is the largest producer of phosphate-based fertilisers, and worldwide, it is the largest producer of high-grade phosphate rock and the second largest producer (excluding China) of Diammonium Phosphate (DAP) and Monoammonium Phosphate (MAP).