New Delhi, March 4 India's agriculture sector is expected to face the heat from hostilities between Russia and Ukraine which are expected to push up prices and availability of Potash a key component used in the manufacturing of fertilisers.
At present, Belarus and Russia are key suppliers of Potash in the global market.
On the other hand, India is a major importer of Potash, which is used in the manufacture of fertilisers.
At an overall level, Russia, Ukraine and Belarus contribute 10-12 per cent of India's total fertiliser imports.
Earlier, India was exploring opportunities to import Belarusian Potash through Russian ports, now with sanctions that option may face challenges.
Besides, other Potash miners mostly based in Canada are not willing to raise production, thereby, keeping the prices at an elevated level.
Consequently, the supply crunch is expected to increase Potash import prices to around $500-600 per MT in the near term as against imports made at around $280 per MT for the major part of FY2022.
Furthermore, higher prices will also drive up government subsidies.
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