Potash. Central nutrient in fertilizers required to enhance yields of grain
Photo: Yariv Katz
ICL signs another potash deal in India
Israeli company to supply Indian customers with 415,000 tons of potassium compound, in addition to 1.1 million tons announced earlier this week. All new contracts stipulate price of $490 per ton
After signing a potash supply contract with a key customer in India, Israel Chemicals Ltd. announced Wednesday that ICL Fertilizers had signed additional agreements with other Indian customers to supply an additional 415,000 tons of potash (including an optional quantity of 25,000 tons).
This is in addition to the 1.1 million tons (including optional quantities of 100,000 tons) announced earlier this week, bringing the total potash to be supplied to Indian customers to approximately 1.5 million tons.
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All new contracts stipulate a price of $490 per ton, or $120 per ton higher than the price prevailing in previous agreements with these customers, and a supply period of eight months beginning in August 2011 and ending on March 31, 2012.
Potash is a central nutrient in the fertilizers that are required to enhance the yields of grain, a critical commodity whose demand is growing in step with the world's rapidly growing population, the company said in a statement.
As such, India and China, which must supply food to more than two billion people, have become large consumers of potash. This makes these regions key target markets for ICL Fertilizers, especially given the logistical advantage of the Company's location in Israel as compared to most of its competitors in southeast Asia.
"The potash supply agreements that the Company has signed recently with customers in China and India demonstrate the company's strategic focus on these markets, and help to extend the stable business platform that it has established in these regions," the statement concluded.
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