Published: September 12, 2023 4:06 pm
Author: RT
Sellers have reportedly stopped offering discounts in light of tightening global supplies
Russian companies in August started selling fertilizer to India without discounts amid surging global costs, Reuters reported on Tuesday, citing sources.
Russia became India’s biggest fertilizer supplier in 2022 as exporters began offering heavy discounts to Indian buyers. Moscow has boosted its exports of mineral fertilizers to countries in Southeast Asia, particularly China and India, in light of Ukraine-related Western sanctions.
“There are no discounts. Russian companies are offering fertilizers at the market prices,” an unnamed New Delhi-based senior industry official, who was reportedly involved in the negotiations with overseas suppliers, told Reuters.
Another Indian company official highlighted that Russian companies had previously been offering diammonium phosphate (DAP) at discounts of as high as $80 per ton. “However, now they are not offering discounts of even $5,” he lamented.
According to the official, the current price of Russian DAP is approximately $570 per ton on a cost and freight (CFR) basis for Indian buyers, which is the same price offered to other Asian buyers.
The report indicated that India’s fertilizer imports from Russia skyrocketed 246% to a record 4.35 million metric tons in the 2022/23 financial year ending on March 31, as suppliers offered discounts to the global market price for DAP, urea and NPK fertilizers.
READ MORE: Russia becomes India’s top fertilizer supplier – Reuters
A third official, from a Mumbai-based fertilizer company, told the outlet that soaring global fertilizer prices have been disrupting Indian companies’ efforts to accumulate stocks for the upcoming winter season.
In July, global suppliers were offering urea at approximately $300 per ton on a CFR basis, but are now quoting $400 per ton, the anonymous official claimed. He added that back then prices for DAP, which is essential for growing wheat, were around $440 per ton.
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