Canpotex signs potash sales deals to India

Thu Nov 20, 2014 11:23am EST
 
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WINNIPEG, Manitoba Nov 20 (Reuters) - Canpotex Ltd, the offshore sales agency for North America's three biggest potash producers, has agreed on multi-year sales agreements with two Indian fertilizer companies, the government of the Canadian province of Saskatchewan said on Thursday.

Coromandel International Ltd and Tata Chemicals Limited signed separate agreements to buy the crop nutrient from Canpotex, which is owned by Potash Corp of Saskatchewan, Mosaic Co and Agrium Inc , the government said.

Terms were not released. In April, Canpotex signed an annual agreement with Indian buyers to supply 1 million tonnes of potash at $322 per tonne on a cost and freight basis.

Buyers from India and China purchase potash from North America on a contract basis, while buyers in the United States, Brazil and other markets typically pay more on the spot market.

The shutdown this week of a flooded potash mine owned by Russia's Uralkali OAO has boosted price prospects for the nutrient.

Spokespersons for Canpotex, Tata and Coromandel could not be immediately reached.

Canpotex supplies about one-quarter of the potash used to fertilize crops and for other uses in India, its fourth-largest off-shore market.

The company sells potash that the three miners produce in Saskatchewan. The western province's premier, Brad Wall, is visiting India. (Reporting by Rod Nickel in Winnipeg, Manitoba Editing by W Simon)