PhosChem to supply India with DAP fertilizer at $612/tonne

30 March 2011 20:54  [Source: ICIS news]

LONDON (ICIS)--Phosphate Chemical Export Association (PhosChem) has agreed a deal to provide 1m tonnes of diammonium phosphate (DAP) fertilizer to two India-based buyers at $612/tonne (€435/tonne), the US phosphate exporter said on Wednesday.

The deal, on a cost and freight (CFR) basis, is for shipments between April and September, PhosChem said.

The news comes a day after Moroccan producer Office Cherifiens des Phosphates (OCP) concluded business at the same price.

The new price is an increase of $112/tonne from PhosChem's supply deal with customers in India last year. Deals with suppliers in Russia and Jordan have yet to be confirmed.

The PhosChem deal is part of a wider 2m-tonne/year DAP contract with India-based buyers that runs for three years over 2010-2012.

Stagnated DAP production in India has boosted the country's demand for imports of the fertilizer. India relies heavily on imported DAP feedstocks, mainly phosphate rock and phosphoric acid. 

India’s Ministry of Agriculture says the country will need a total of around 7m tonnes of DAP for the kharif crop season, which starts in June.

($1 = €0.71)

For more on potash and phosphate fertilizers, visit ICIS pricing fertilizers

By: Lauren Williamson
+44 (0) 20 8652 3214

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