Russian sellers said to stop fertiliser discounts to India

Russian companies halt discounts on fertilisers to India, causing import costs & subsidy burden to rise. No discounts offered, prices same as other Asian buyers. Global fertiliser prices surging, making it hard for Indian companies to stock up for winter season.

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Russian companies have ceased offering fertiliser such as di-ammonium phosphate (DAP) to India at discounted prices due to tightening global supplies after becoming the biggest suppliers to the country last year, three industry sources told Reuters.

The move in August by Russian companies to offer fertilisers at market prices could increase India's import costs and subsidy burden amid a rally in global prices, as a top exporter, China, tries to curtail overseas sales.

"There are no discounts," said a New Delhi-based senior industry official involved in the negotiations with overseas suppliers. "Russian companies are offering fertilisers at the market prices," the official said, declining to be named due to the sensitivity of the matter.

India's fertiliser imports from Russia surged 246% to a record 4.35 million metric tons in the 2022/23 financial year ended on March 31 as suppliers gave discounts to the global market price for DAP, urea and NPK fertilisers.

Russia's aggressive selling last year eroded the Indian market share of other fertiliser exporters including China, Egypt, Jordan, and the United Arab Emirates.

"Russian companies were offering DAP at discounts of as high as $80 (per ton). However, now they are not offering discounts of even $5," said another Indian company official.