IFFCO and IPL reach PhosChem export agreement

Fertiliser cooperative major IFFCO, along with Indian Phosphates Ltd (IPL), has entered into a landmark agreement with the Phosphate Chemicals Export Association (PhosChem), according to which the latter will supply 1.25 million metric tonne of DAP between March 1, 2009 and February 28, 2010 initially to the former. PhosChem is a fully integrated marketing organisation, formed solely for the purpose of handling export sales for its member firms.

This is a first of its kind effort by Indian industry to lend stability of supply to the product. The price for these supplies will be linked to the published international prices but the real significance of the agreement is the steady supply of DAP to meet the needs of the country's farm sector. Speaking on the occasion U S Awasthi, managing director, IFFCO, said, "For close to 40 years IFFCO has been working towards providing fertiliser security for the Indian farmers. This arrangement goes a long way in guaranteeing availability of DAP, an important fertiliser for Indian soils, to domestic farmers in adequate quantities throughout the year."

P S Gahlaut, managing director, IPL, said, "This agreement is unique and will lend much needed stability to fertiliser supply as well as ensure supply security and availability in times of volatile prices".