Earlier, India was exploring opportunities to import Belarusian Potash through Russian ports, now with sanctions that option may face challenges.Besides, other Potash miners mostly based in Canada are not willing to raise production, thereby, keeping the prices at an elevated level.Consequently, the supply crunch is expected to increase Potash import prices to around $500-600 per MT in the near term as against imports made at around $280 per MT for the major part of FY2022.Furthermore, higher prices will also drive up government subsidies.”With both (Belarus and Russia) being sanctioned the supply crunch in the global market will rise,” said Rohit Ahuja, Head – Research and Outreach, ICRA.”With already elevated prices, the subsidy bill that the Government of India will have to foot to maintain a reasonable retail price for farmers, will also witness a sharp increase.”
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