Potash demand to take a hit, with China-induced price hike

The projection of a normal monsoon this year might have brought some cheer to Indian farmers, but they are still facing the prospect of having to pay higher prices for potash, or fertiliser potassium. Reason: China, the world’s largest buyer of potash, has signed an annual agreement with producers at a higher price, which traditionally acts as a benchmark for the whole market. So, India, another important potash consumer, which will soon start negotiations, could find it difficult to seal the deal at last year’s price. The new price is expected to be higher than last year’s which importers will pass on to consumers, according to government sources. The two biggest potash producers — Potash Corp of Saskatchewan and Russia’s Uralkali — have recently cut output to tighten supply and stem price decline of the nutrient, which helps boost crop quality and yields. Astrology and Numerology Trading Tips