It has been recently reported that Canpotex – a partnership between Potash Corp. of Saskatchewan (POT), Agrium Inc. (AGU) and Mosaic Co. (MOS) – has agreed to supply potash to India at $460 per ton. This is much lower than potash prices of about $700 per ton agreed upon with India last year.
Canpotex is a part of the potash cartel that controls about 75% of the global potash capacity. Besides Canpotex, the potash cartel comprises three Russian producers (Uralkali, Belaruskali, and Silvinit) and a German producer – K+S.
The price of potash – an essential crop nutrient – was obstinately high on top of falling demand. To keep pricing unaffected, the fertilizer cartel had deliberately curtailed production. About 40% of the global potash production capacity has been idled since the second half of 2008.
The recent price cut by Canpotex has indeed followed the footsteps of Silvinit and K+S,
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