With the completion of the elections in India, hopefully some of the uncertainty has been removed from the Indian economy. In recent years the emphasis has been on nitrogen based fertilizers in India by virtue of a shrinking potash subsidy. This among other things has resulted in a decrease in total potash consumption from a high of about six million tonnes to approximately 3.5 million tonnes. This reduction has resulted in an unbalanced application of fertilizer which will ultimately result in a reduction in agricultural yield.
As this is an important market regarding potash sales, it will be interesting to see how quickly, and if Mr. Modi will be able to reform the subsidy program and/or institute new policies to balance fertilization and ultimately boost agricultural yield while not putting the country in fiscal peril.
Contact Schlumpberger Inc to discuss the potash markets.