Agencies-Gaza post
Russia becomes India’s main fertilizer supplier
Moscow presented its agricultural commodities at lower prices than China, Saudi Arabia, Morocco, and Jordan
Russia become India’s enormous supplier of phosphate fertilizers due to price cuts linked to Western sanctions over Ukraine, The Indian Express reported on Thursday, citing industry sources.
According to the report, India imported 350,000 tons of diammonium phosphate, or DAP, a fertilizer that provides agricultural crops with phosphorus throughout their growth, in the last three months.
“The imports came at just the right time as sowing began for the rainy season, which will peak in July“, says the publication.
Russian fertilizer maker PhosAgro has offered Indian companies a deep discount on its products while taking on bank commissions for payments. As a result, the cost of Russian fertilizer for India was $920-$925 per tonne, which is lower than prices from other international suppliers, including China, Saudi Arabia, Morocco, and Jordan.
According to the Express report, the price offered by Russia is in line with the price cap that India recently imposed on fertilizer importers. It also notes that the situation could force other fertilizer suppliers to lower their prices if they want to retain their share of the Indian market.
The only problem with Russian imports is payments, which is a complicated process as Russia is forced to operate under sanctions. However, sources say the industry has come up with something: “innovative methods“, to solve the problem.
“The risk had to be borne by the seller (PhosAgro) in this case, as the banks were unwilling to open letters of credit (as a guarantee of payment) on behalf of the importers.
Payments were then made by wire transfer to the seller’s account after the seller had physically presented the required documents (copy of invoice, certificate of origin, bill of lading, insurance policy, etc.) seven to ten days after setting the sail,‘ the sources explained.
