Canpotex, the potash selling agency, has inked a potash supply agreement with the Indonesia market. The contract is for Canpotex to supply Indonesia with potash for five years, according to reports from Reuters.
Canpotex is owned by Potash Corp of Saskatchewan, Agrium and Mosaic. Terms of the contract were not released.
The announcement comes within a few days of India announcing its price subsidy for fertilizer for this next season. Prices set in India have ripple effect on fertilizer prices around the world. Potash supplies in North America are up while prices remain slightly lower.
Fertilizer demand, potash in particular, is increasing rapidly in Indonesia. The Saskatchewan government said Indonesia’s potash imports have increased 85 percent during the past five years. Farmers are choosing to fertilizer corn, rice and palm crops.
China and India are anticipated to sign their own contracts with Canpotex within the next few months.