India's largest Phos Acid importer signs deal worth USD 600 per mt

Amongst a grim market saga being acted out in the global Phosphoric Acid trade market. IFFCO, which is India's biggest fertilizer player and the largest Phosphoric Acid importer announced its agreement to import Phosphoric Acid at a price of USD 600 per metric tonne CFR with 30 days credit for Q2 and Q3 of 2016.

"Average CFR DAP price for India has been steadily falling from USD 400- USD 410 levels in January, 2016 to around USD 340-USD 350 levels at present," said Managing Director of IFFCO, Dr. U S Awasthi.

"At these levels the price of Phosphoric Acid import should be around USD 500 per tonne but the suppliers especially the big ones have been adamant at not reducing the price of Phosphoric Acid ( an essential raw material to produce DAP) from USD 715 in Q1 of 2016 to even USD 600 for Q2 of 2016. Some even went to the extent of 'threatening' to stop supply to India," added Awasthi.

Elaborating on the matter further Dr. Awasthi went on to say that IFFCO is a large farmers organization which is welfare driven. Therefore, we can't pass on the rise in raw material prices to the farmers. So our demand of reducing the import price of Phosphoric Acid was reasonable and justified.

"We work with our suppliers as partners but if some of them expect that we will buckle under any pressure then let me make it absolutely clear to them that we will not, that is not how IFFCO functions," he added.

India is one of the largest importer of Phosphoric Acid in the world with over two million metric tonne imported in 2015-16 out of which IFFCOs share stands at 41 percent or about 825,000 MT. Making IFFCO a strategic player in the global Phosphoric Acid trade.