ICL, a global manufacturer of products that fulfill essential needs in the agriculture, processed food and engineered materials markets, announced that its ICL Fertilizers segment signed several contracts for the supply of an aggregate of 835,000 metric tonnes of potash to its customers in India, including options. The selling price stipulated in the contracts is $10 per tonne above previous contracts and similar to the prices announced recently by other potash manufacturers for sales to the Indian market.
The new contracts demonstrate the strong relationships that ICL has developed with its customers in Indiawho elected to wait until the conclusion of ICL's recent strike to negotiate the contracts with ICL Fertilizers. ICL's position as one of the world's main suppliers of potash to India testifies to the success of its strategy which views with importance the strategic, large and growing Indian market and which enables it to maximize ICL's advantages over most of its competitors as a result of its open air storage capabilities at Sdom, near the Dead Sea, as well as logistical advantages achieved by shipping potash from the port of Eilat to Indiaquickly and at relatively low cost.
In addition, ICL is active in India through its 'Potash for Life' farmer training program and promotion of potash consumption. The program, launched in October 2013, is designed to unlock the potential of agriculture inIndia by promoting balanced fertilization among India's farmers to increase agricultural productivity and economic benefits, as well as to contribute to the creation of sustainable food production in India. The program, which includes hundreds of potash demonstration plots, has achieved substantial progress in providing Indian farmers with science-based evidence of the many benefits and improved profitability that derives from using potash fertilizers on over 20 crops that have been tested to date.
Commenting on the news, Mr. Nissim Adar, President & CEO of ICL Fertilizers, said, "The new contracts that we have signed with our customers in India confirm our leading position in the strategic Indian market, whose potential for rapid growth is expected to be a leading driver of worldwide potash demand for years to come as a result of the rise in India's standard of living, among other factors, which is transforming eating habits and driving the need to provide sufficient quantities of food for a large population that will only continue to grow in the future. These factors are leading to the growing use of fertilizers, and ICL's supply of a wide variety of fertilizer products can help to increase agricultural output in every area and sector and thereby help to provide India's large population with sufficient quantities of quality food. We are proud of our ability to supply India with our broad range of fertilizer products, and we appreciate, and are thankful for the trust that our customers have placed in us."