UPDATE 3-Belarus to sell India potash at lowest price in a decade

Mon Jun 27, 2016 1:22pm EDT
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* Surplus of potash has pushed down prices

* India to buy 700,000 tonnes at $227 a tonne

* Price will influence other suppliers in India

* India, China are world's biggest fertiliser consumers (Adds Uralkali comment, updates share prices)

By Andrei Makhovsky and Rajendra Jadhav

MINSK/MUMBAI, June 27 (Reuters) - Belarus has agreed to sell potash to India at the lowest price in a decade and about a third less than last year's level as global supplies of the crop nutrient exceed demand.

One of India's biggest fertiliser importers, Indian Potash Limited (IPL), will buy 700,000 tonnes of potash at $227 per tonne on a cost and freight (CFR) basis with a credit period of 180 days, Belarusian Potash Company, Belarus's state-controlled trader of this fertiliser, said in a statement on Monday.

Belarus' contract price is likely to become the benchmark for other suppliers to India, such as Russia's Uralkali and North American trading group Canpotex Ltd, owned by Potash Corp of Saskatchewan , Mosaic Co and Agrium Inc.

Interfax news agency cited a Uralkali spokesperson as saying a price of $227 per tonne was too low and the company was not yet ready to sign a contract with India.   Continued...