IFFCO : India's Largest Phos Acid Importer goes ahead with Signing Contracts at $600 per Metric Tonne. Says it will not buckle under any Pressure

Amongst a grim market saga being acted out in the global Phosphoric Acid trade market. IFFCO: India’s biggest fertiliser player and the largest Phosphoric Acid importer in the country today announced that it has agreed to import Phosphoric Acid at a price of $600 per metric tonne CFR with 30 days credit for Q2 and Q3 of 2016.

Dr. U. S Awasthi, Managing Director of IFFCO said that,  “Average CFR DAP price for India has been steadily falling from $400- $410 levels in January, 2016 to around $340 - $350 levels at present.” Dr. Awasthi added that, “At these levels the price of Phosphoric Acid import should be around $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 $ 715 in Q1 of 2016 to even $600 for Q2 of 2016. Some even went to the extent of ‘threatening’ to stop supply to India.”

Elaborating on the matter further Dr. Awasthi went on to say that, “IFFCO is a large farmers organisation 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!!! ”.

India is one of the largest importer of Phosphoric Acid in the world with over 2 Million MT imported in 2015-16 out of which IFFCOs share stands at 41 % or about 825,000 MT. Making IFFCO a strategic player in the global Phosphoric Acid trade.