UPDATE 1-Belarus to sell India potash at lowest price in a decade

(Adds details, quotes, context)
MINSK/MUMBAI, June 27 (Reuters) - Belarus has agreed to sell
potash to India at the lowest price in a decade and about a
third less than last year's level as global supplies of the crop
nutrient exceed demand.
One of India's biggest fertiliser importers, Indian Potash
Limited (IPL), has agreed to buy 700,00 tonnes of potash at $227
per tonne on a cost and freight (CFR) basis with a credit period
of 180 days, Belarusian Potash Company, Belarus's
state-controlled trader of this fertiliser, said in a statement
on Monday.
India and China, the world's biggest fertiliser consumers,
usually sign contracts earlier in the year. This year, deals
were delayed as high stocks held by farmers meant there was no
rush to agree a deal.
India's deal is a rare instance of the country signing a
potash supply contract with a major producer before China.
The Indian buyers confirmed the contract signing. The price
is sharply down from last year's price of $332.
"After lengthy negotiation Belarus has agreed to supply
potash at $227," one of the Indian buyers told Reuters.
IPL said it would pass on part of the benefits from lower
import prices to farmers by slashing the retail price of potash
by 4,000 rupees per tonne ($59).
The contract price is fair and reflects the current
conditions in the global potash market, Elena Kudryavets,
director general of Belarusian Potash Company (BPC), said in a
statement.
"The contract reflects interests of producers, importers and
consumers of potash fertilisers," she added.
Belarus' contract price is likely to become the benchmark
for other suppliers to India, such as the powerful North
American trading group Canpotex Ltd, owned by Potash Corp of
Saskatchewan POT.TO , Mosaic Co MOS.N and Agrium Inc
AGU.TO .
"Since one supplier has agreed on the price, others have to
follow. Uralkali is likely to be next to sign the deal, followed
by Canpotex," said a senior official at a leading Indian
fertiliser company.
Russia's Uralkali URKA.MM , the world's largest potash
producer, was not available for comment.
($1 = 67.9495 Indian rupees)