Agricultural power must ensure potash supply

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Recently, Indian government officials and businesspeople are busy with shuttle operations between various potash companies in Canada and seek to purchase shares of Canadian potash companies. In recent years, India has been in frequent contact with potash fertilizer production companies in resource countries such as Belarus, Russia, and Germany in order to participate in shares in local potash companies. Despite frequent collisions, the Indians are not discouraged and continue to look for opportunities to show a gesture that does not stop until they reach their goals. It is not difficult to understand that India is so fond of potash fertilizer.

As domestic production can only meet the demand of 5%, India's potash fertilizer is basically completely dependent on imports. The annual import volume is between 5 million and 6 million tons. At present, India has become the world's largest importer of potash fertilizer, and imports account for nearly half of the global potash fertilizer trade market. In the global situation of potash fertilizer demand, especially in Latin America and Southeast Asia, the demand for imports has increased, and India has faced many pressures in the import of potash fertilizer. Every time an international supplier raises the export price of potash, it will have a huge impact on the potash supply and agriculture in India. In 2008, the international market price of potash rose from 300 US dollars per ton to more than 1,000 US dollars, and India suffered a major loss in this respect. International potash prices have skyrocketed and pose a serious threat to India’s supply of potash fertilizer. Therefore, India has been working hard to find opportunities to purchase shares of foreign potash companies, or establish long-term cooperative relations with potash companies to ensure the supply of potash in India.

For Canada's potash fertilizer production, Indian stakeholders believe it has a very large resource advantage. Canada's coast can get cheaper shale gas, the price is as low as 2 US dollars / million British thermal units, so the exploitation of underground potassium mineral resources in the local economy is more economical. Canada also has the advantages of lower production costs and rich raw material resources. For India, access to Canada's potash related resources is of great significance to guarantee the supply of potash fertilizer in India. It is also the best and most realistic choice.

Since potassium fertilizer is very important for food security, various countries have taken actions in recent years in an effort to change the passive status of potassium fertilizer. Brazil has also acted in this regard. Brazil is one of the world's major agricultural product producers, but more than 90% of potassium is dependent on imports. Its fertilizer imports amounted to US$9.138 billion in 2011. Reducing the dependence on foreign fertilizers, reducing the prices of agricultural products, and then increasing the competitiveness in the international market are important strategic contents of Brazilian agricultural development. To this end, the end of last month, the world’s largest iron ore producer and exporter CVRD Brazil extended an agreement with the government to extend the lease of a mine in Selkipe state in northeastern Brazil. At the same time, the company also announced that it will invest 4 billion US dollars to build potash fertilizer plant to use the local potash to produce fertilizer. The potash plant was officially put into production in 2014, and will produce 1.2 million tons of potash fertilizer annually, which will provide a strong guarantee for Brazil's agricultural development.

India and Brazil's actions in potash fertilizers have given people such a revelation: The big agricultural countries must think about guaranteeing the supply of potash fertilizer. They must use resources to make good use of them. Without resources, they must go out.

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