UPDATE 2-India to buy Uralkali potash at lowest price in 7 years
* India to buy potash at $322/T on CFR vs $427 last year
* Suppliers such as Canpotex likely to match Uralkali's price
* Indian demand to remain subdued on subsidy reduction
* The price is $17 above the price for China (Changes source, adds Uralkali comment, details on IPL)
By Rajendra Jadhav and Polina Devitt
MUMBAI/MOSCOW, April 1 (Reuters) - India has agreed to buy potash from Russia's Uralkali at the lowest price in seven years and about 25 percent less than last year's level, Russian company said on Tuesday.
The bargaining power of buyers has increased since Uralkali, the world's largest potash producer, broke away in July from a sales alliance with Belarus - Belarusian Potash Company - with global potash prices falling more than 20 percent.
"We hope that the contract will help stimulate potash application rates in India, and support the country's agriculture at a time of continued population growth and rising food demand," Oleg Petrov, Uralkali head of sales, said in a statement.
One of India's biggest fertiliser importers - Indian Potash Limited (IPL) - has agreed to buy 800,000 tonnes of potash at $322 per tonne on a cost and freight (CFR) basis in the year starting April 1. Continued...