Indian, Russian cos ink $1 bn fertiliser import pact

New Delhi: Indian Potash Ltd has agreed to import up to 2 million tonnes of fertilisers worth $1 billion (over Rs 7,300 crore) from Russia's PhosAgro, the world's leading producer of phosphate-based nutrients, over the next three years.

PhosAgro Friday announced the signing of an agreement with the Russian Direct Investment Fund (RDIF) and the IPL that covers cooperation in the sphere of mineral fertilisers.

The signed agreements were exchanged in the presence of Russian President Vladimir Putin and Prime Minister Narendra Modi here Friday, PhosAgro said in a statement.

"As part of a framework for mutually beneficial cooperation, IPL intends to purchase for the Indian market up to 2 million tonnes of high-quality mineral fertilisers produced by PhosAgro -- DAP and NPK with various nutrient content -- in 2019-2021. The total value of deliveries is estimated at $1 billion," the statement said.

Under the agreement, RDIF, PhosAgro and IPL also plan to consider the possibility of jointly implementing promising investment projects in the mineral fertiliser sector.

In addition, the parties intends to cooperate in a number of areas, including exchange of advanced know-how and the sharing of best practices related to the agri-environmental use of fertilisers. India meets around 20 per cent of its urea requirements through imports. The dependence on imported Phosphatic & Potassium (P&K) fertilisers is as high as 90 per cent.

"This cooperation agreement is a significant contribution to the development of Russian non-resource-based high-tech exports and an additional incentive for further investment in the domestic mineral fertiliser industry, which will strengthen food security in Russia and India and increase trade between our countries," PhosAgro CEO Andrey Guryev said.