BPC settles new India potash contract at $383/t CFR; $35/t above China’s 2026 benchmark

Belarusian Potash Company (BPC) confirmed May 18 that it has settled a new standard muriate of potash (MOP) contract with Indian Potash Limited (IPL) at $383 per tonne CFR, with 180 days of credit for deliveries running from June through the end of December 2026.

to beThe settlement is $35 per tonne above China’s 2026 standard MOP contract, signed in November 2025 at $348 per tonne CFR, a margin that Argus Media noted is well above the average $8 per tonne premium India has maintained over China during 2016–2025. BPC attributed the higher price to sustained demand and tightening global supply. Contracted volumes remain under discussion but are expected to be around 650,000 tonnes, consistent with the past two years.

The India settlement immediately unlocked deferred buying decisions across the region. An Indonesian importer, which had canceled prior tenders for a combined 155,000 tonnes of standard MOP while waiting for the India benchmark, issued a new tender on May 18 for 20,000 tonnes of bagged white standard MOP for June to August delivery to Palembang, closing May 21. A larger follow-on tender is expected from the same buyer shortly after.

The BPC-IPL deal is the first major potash benchmark since China locked in $348 per tonne six months ago. With the reference price established, further contracting activity is expected across India’s buying consortia and other Southeast Asian importers ahead of the kharif crop application window. India’s Ministry of Fertilizers established a joint procurement consortium earlier this year to coordinate imports of DAP, MOP, and phosphate rock — a structure that gives IPL additional purchasing leverage in future negotiations.

Source: Argus Media