Date:06/05/2008 URL: http://www.thehindu.com/2008/05/06/stories/2008050655491600.htm

Business

IFFCO to buy fertilizer from Australia

Special Correspondent

NEW DELHI: Indian Farmers Fertiliser Cooperative Limited (IFCO) on Monday entered into a long-term off-take and supply agreement with Australia’s Legend International Holdings Inc. for about three million tonnes annually of concentrate rock phosphate from the Lady Annie project in Queensland, Australia.

IFFCO and Legend have decided to pursue the project in joint venture with an investment of about $800 million. IFFCO Managing Director U. S. Awasthi said, “India is now facing shortage of phosphate fertilizers which is causing concern to the farmers. The prices of phosphate fertilizers, including their raw material, have also increased many folds in the last one year due to supply constraints and other factors like increased use of bio fuels in different countries.”

IFFCO has maintained that supplies coming from Legend within the next 2-3 years will not affect the present suppliers and will ensure that its Paradeep unit will operate at its full capacity and if possible even at higher capacity without facing any constraints on account of raw materials.

However, financing and joint venture options for the capital cost of the Legend project are now under discussion as is the price of the phosphate rock, IFFCO said.