Russian sellers stop fertiliser discounts to India

The move in August by Russian companies to instead 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.

The current price of Russian DAP is approximately $570 per ton on a cost and freight (CFR) basis for Indian buyers, which is the same price offered to other Asian buyers, said a Russian industry official.