The Canpotex monopoly and price-fixing entity of Canada, which includes Potash,(NYSE:POT), Agrium (NYSE:AGU) and Mosaic (NYSE:MOS), have landed a five-year deal to supply 3 million tons of potash to India's Coromandel International Ltd.
Canpotex CEO Steve Dechka said, "This agreement confirms Canpotex's long-term commitment to the important Indian market, and reflects the confidence our Indian partner, CIL, has in Canpotex's ability to meet their growing potash requirements."
Terms of the deal call for a 500,000 annual supply through March 31, 2016.
Opposition to the bid from BHP (NYSE:BHP) is largely based on their commitment to produce potash at market rates rather than the price controls of the Canpotex cartel.
Farmers pay higher prices and food is also higher in price because of Canpotex and the Belarusian potash cartel.
Hopefully the Canadian government will resist politically-based opposition and allow the bid by BHP Billiton to go forward, as it would be good for the industry and markets.
1 comment:
Don't hold your breath Elle.
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