Russia is already the largest supplier of MOP to India, accounting for nearly 60 percent of imports. India's fertiliser imports from Russia surged 246 percent to a record 4.35 million tonnes in 2022-23 as Russian companies gave discounts to the global market price for MOP, DAP, urea and NPK fertilisers.
The price has been cut from Rs 19,000 per tonne to Rs 17,500 per tonne, an official statement said. The reduction will be Rs 75 per bag.
Sowing of rabi crops begins from October and the harvesting from April. Wheat is the main rabi crop, while maize, millets, pulses and oilseeds are also grown.
Retail prices of non-urea fertilisers such as Di-ammonium Phosphate (DAP), Muriate of Potash (MoP) and NPK are decontrolled and are determined by the manufacturers, while the Centre gives them fixed subsidy each year.
Last month, IPL had signed an agreement with Belarusian Potash Company, owned by the Belarus government, for import of 7 lakh tonnes of MoP at USD 227 per tonne.
Recent news reports suggested that the government announced a cut in prices of fertilisers such as Diammonium Phosphate (DAP). Speaking to CNBC-TV18, Satish Chander of the Fertiliser Association of India said only government fertiliser companies have been told to cut prices. Pricing power is with private companies, he said.
Country's largest potash firm IPL announced cut in prices of MoP by Rs 50 to Rs 750 per bag of 50 kg, effective from tomorrow
A consortium led by state-owned Rashtriya Chemicals and Fertilisers is in talks with Canada-based Encanto Potash for a long term supply agreement of 2 million tonnes per annum of potash.
The government today said there is shortage of key fertilisers and it is trying to import sufficient quantities to ensure domestic supply.
The deadlock between Indian fertiliser firms and global suppliers of muriate of potash (MoP) over pricing of imports for this fiscal continues, with the later refusing to sell the farm nutrient at a lower price of USD 470 a tonne.