Indian importers raise domestic MOP prices

Indian fertilizer importers Zuari and MCFL have both raised the maximum retail price (MRP) of MOP fertilizers to 18,980 rupees/t ($262/t).

The hike is Rs4,580/t ($63/t) higher than the previous MRP of Rs14,400/t. The recent depreciation of the rupee against the US dollar and the settlement of annual potash contracts $50/t higher against last year have driven the increase. Indian buyers settled the 2018-19 annual contracts at $290/t cfr with 180 days' credit.

The new MRP is largely in line with Argus estimates. The MRP was initially expected to rise to around Rs19,000/t around October or November, as buyers were still purchasing old stocks at last year's prices.

Indian importer IPL in mid-August raised the MRP from Rs14,000/t to Rs14,400/t to counter the effects of the depreciating rupee. The rupee has fallen from Rs66.92 to the US dollar on 1 June to Rs72.48 today.