Russian fertilizer producer Phosagro has called on India to lower the 5% import tariff on Russian fertilizers to ensure stable future supplies. This appeal came after discussions on fertilizer imports during Indian Prime Minister Narendra Modi's visit to Moscow.
India is the world's second-largest fertilizer importer, with a quarter of its 2023 imports coming from Russia. Additionally, India's imports of Russian grains and cereal products increased 22-fold, far surpassing other major importers. Phosagro noted that following Western sanctions, its fertilizer exports to India grew sixfold in 2022. According to the Russian agricultural supervision agency, Russia exported 89.3 million tons of grain and cereal products in the 2023/24 agricultural season, a 21% increase from the previous season.
Modi thanked Russian President Vladimir Putin for providing a stable supply of fertilizers to Indian farmers. During their talks, Russia and India agreed to raise their bilateral trade target from the current $65 billion to $100 billion by 2030.
Phosagro stated, "We are ready to further increase fertilizer supplies, but existing trade barriers limit our capacity, raising the cost of delivering products to our Indian customers."
The company suggested that one way to eliminate tariffs on Russian producers is to establish a free trade zone between India and the Eurasian Economic Union (EAEU).
In a joint statement following the Moscow talks, Russia and India agreed to continue cooperation in supplying sustainable fertilizers to India under long-term contracts between companies.
Attention: The above information is for commercial reference only due to the diversity of information collected, and Kelewell is not responsible for the authenticity of the data.
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