Israel Chemicals (ICL) announced last week that, for the first time, it had signed a five-year supply deal with Indian Potash Ltd (IPL), India’s largest importer of potash. The Israeli company said it expected to supply IPL with 600,000 tons of potash annually in 2019 and 2020 with the amount going up to 650,000 annually between 2021 and 2023, including options. “Prices … shall be determined in accordance with the prevailing market prices in India at the relevant date of supply,” ICL company said in a statement. The business deal was signed by the parties in a ceremony held in New Delhi that was also attended by Israel’s Ambassador to India Dr. Ron Malka.
Mr. Goldstein, President of ICL’s Potash division, commented that “we consider our company to be the most cost-competitive supplier to India due to, among other things, our geographical proximity which results in major logistical advantages, including lower transportation costs and reduced time-to-market compared to our competitors. Our agreement with IPL anchors ICL’s relationship with the largest potash importer in India and, in parallel, solidifies our company’s market position in India.”
Mr. Goldstein of ICL also stressed that the deal represented a strategic deal given the importance of the Indian market for the company. ICL is a global specialty minerals and chemicals company operating in a unique business model that combined bromine, potash and phosphate mineral value chains. The Israeli company also plans to boost its abilities in innovative agro solutions by leveraging ICL’s existing capabilities and agronomic know how.